Sweden has granted green steel startup Stegra 390 million crowns, equivalent to $41 million, in funding. This financial injection assists the Swedish company in securing the necessary capital to finalise its factory in northern Sweden. The Swedish Energy Agency believes the project holds significant potential to accelerate the transition within the iron and steel industry and that this support increases Stegra’s chances of securing additional capital.
Stegra is a green steel company that is working to remove carbon dioxide emissions from steel production. The company aims to achieve this by using hydrogen produced on-site from renewable electricity. In October, Stegra announced plans to raise up to $1.1 billion in additional funding to complete its plant, having previously secured loans and equity worth 6.5 billion euros ($7.5 billion) last year.
The Swedish Energy Agency has stipulated that its support for Stegra is conditional. By the spring of 2026, Stegra must demonstrate that it has secured sufficient capital to complete the project. According to CEO Henrik Henriksson, Stegra has secured around half of the funds it needs and expects to secure the rest from banks within six months.
Stegra also acknowledged that the funding fell short of the government’s initial request and the EU’s approved amount. However, the company stated that they can now take the next step with financiers. They believe this will somewhat level the playing field in relation to other projects in Sweden and the rest of Europe.
