Stegra's €6.5B green-steel bet: world's first large-scale plant nears 2026 start

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.

Renewable hydrogen can cut steel emissions 95%, automakers will pre-order, and EUR 6.5 billion builds the first large-scale plant.

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.

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.

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.

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.

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.

Green steel bets need financing and customer volume, not just technology; slow financing can break the cost curve.

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.