Swedish green iron and steel maker Stegra has entered a new financing round to support the development of the world’s first large-scale green steel plant in Boden, Sweden, following strong initial backing from existing investors.
Founded in 2020, Stegra utilizes hydrogen produced using green power to remove the oxygen from iron oxide, avoiding most of the CO2 emissions normally produced, and uses electricity from 100% renewable sources for the energy requirements generated in the manufacturing process.
Construction of the plant first began in 2022 and it is expected to start operations in 2026, with a goal to annually produce five million tons of green steel by 2030.
Henrik Henriksson, CEO of Stegra, said:
“Stegra has a unique position in the green steel landscape with a strong order book, a competitive cost position, and proven execution capabilities. We have progressed more than 60% of the project and have clear visibility and a detailed plan for the full runway up to completion, including a timeline extension of three months to accommodate for the additional scope. We will now continue to advance the project with the additional strength that will be provided by this new financing round.”
The proceeds from the latest financing round are expected to cover up to roughly 15% of the project’s total funding through a combination of new equity, debt, outsourcing and select strategic partnerships.
Alongside these commitments, the company is engaged in advanced discussions regarding potential outsourcing opportunities.
The financing move comes as Stegra continues to advance its partnerships in sustainable steel. In September 2025, the company announced two agreements with Microsoft to promote the use of near-zero emission steel in the tech giant’s data center operations, signaling growing interest in low-carbon steel solutions.
