The archive · Climate & Energy · Strategic decision · 2021–2026
Stegra's €6.5B green-steel bet: world's first large-scale plant nears 2026 start
Boden plant, renamed Stegra, raised ~€6.5B to replace coking coal with green hydrogen; 60% built by 2025, new financing as costs rose.
Stegra
What the business is
Stegra (formerly H2 Green Steel) is building the world's first large-scale green steel plant in Boden (博登), Sweden: using green hydrogen instead of coking coal to directly reduce iron ore, then making steel in an electric arc furnace, with a planned annual output of 5 million tonnes of near-zero carbon steel by 2030.
Starting capital：Cumulative financing of about EUR 6.5 billion: a EUR 1.5 billion equity round in September 2023; EUR 4.2 billion of debt plus EUR 300 million of equity plus EUR 250 million from the European Union Innovation Fund (欧盟创新基金) in January 2024; a new round launched again in October 2025, up to about EUR 975 million.
How it started
Founded in 2020 by Vargas (an investment company founded by Carl-Erik Lagercrantz and Harald Mix), publicly announced in February 2021, and headed by Henrik Henriksson, then CEO of Scania (斯堪尼亚); inspired by the HYBRIT pilot by SSAB, LKAB and Vattenfall, construction began in Boden (博登) in 2023.
What happened
Completed a EUR 1.5 billion equity round in September 2023 (Hy24, Altor, GIC, Just Climate, among others); signed EUR 4.2 billion of debt financing in January 2024, bringing total financing to about EUR 6.5 billion; renamed Stegra in September 2024, with production targeted for 2026. In June 2025, project progress exceeded 60%, with thousands of people working on construction; in October it launched a new round (about 15% of total financing, up to about EUR 975 million), due to cost increases, railway and port infrastructure shifting from outsourcing to self-construction, and some national subsidies not yet in place, and appointed restructuring experts to the board.
How it ended up
As of September 2026, it is still under construction and has not entered production: according to the company, first steel output is expected in 2026, and delivery of the first orders from Scania (斯堪尼亚) and others is set for 2027; the 2024 operating loss was about SEK 2 billion, and the market has already compared it to the bankrupt Northvolt.
Background
Stegra (formerly H2 Green Steel) bets on green steelmaking: using renewable hydrogen instead of coking coal to cut emissions 95%. Founded by Vargas in 2020, led by Henrik Henriksson, it plans a plant in Boden, Sweden.
Automakers like Scania, Volvo, Porsche pre-order; EUR 1.5 billion equity (2023) and EUR 4.2 billion debt (2024) total EUR 6.5 billion, Europe's largest industrial decarbonisation bet. Renamed Stegra in 2024, production due 2026.
Construction lags: 60% complete by June 2025; new financing of EUR 975 million in October due to cost overruns, infrastructure self-build, and undelivered subsidies. 2024 loss SEK 2 billion; compared to Northvolt. As of September 2026, still building.
What has to be true
- Green hydrogen direct reduction cuts emissions 95%, backed by HYBRIT pilot.
- Automakers pre-order green steel, securing demand before capacity.
- Debt dominates EUR 6.5 billion financing; cost inflation or subsidy gaps break cash plans.
- EU subsidies approved but undelivered force self-funding, raising financing needs.
What can be applied
Green steel bets need financing and customer volume, not just technology; slow financing can break the cost curve.
Aftermath
As of 2026-09-01: Stegra is still building the Boden (博登) plant; according to the company, first steel output is expected in 2026 and first orders are to be delivered in 2027; the October 2025 new financing is progressing (Hy24, Harald Mix, Altor and FAM have confirmed participation), and the 2024 operating loss was about SEK 2 billion. Project progress and financing pace are the subsequent make-or-break factors, with no outcome yet on production start-up or closure.
Sources
- H2GS Announces “Giga-Scale” Green Steel Plant
- Sweden’s H2 Green Steel secures new funding for green steel plant
- Här får Stegras investerare en rundtur på stålverket i Boden
- Stegra in new financing round
- Hy24 confirms participation in the new financing round of the green project Stegra
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