Stockholm-based Stegra, previously H2 Green Steel, has been granted approximately €100 million from the Swedish Energy Agency’s Industrial Leap fund to support the development of a near zero-emission steel production facility in Boden. The funding is part of a broader €265 million measure, approved by the European Commission, aimed at advancing green steel production in Sweden. Stegra’s project focuses on reducing emissions in steel manufacturing, with the facility designed to significantly cut CO2 output. The funds will be allocated towards the construction and integration of sustainable technologies, contributing to Sweden’s climate goals.
H2 Green Steel has rebranded as Stegra to signify its expanded mission of decarbonizing hard-to-abate industries, particularly steel production. Founded in 2021, the company has secured €6.5 billion in funding and is set to launch large-scale green steel production by 2026. The name Stegra, which means “to elevate” in Swedish, reflects its commitment to advancing sustainable solutions through three key platforms: green hydrogen, green iron, and green steel. By replacing traditional carbon-intensive methods with green hydrogen, Stegra aims to create a near-zero emission production cycle at its flagship plant in Boden, Sweden, with plans to scale these technologies to other industries and locations worldwide.
In 2018 the Parliament in Sweden introduced the Swedish climate law. It holds present and future governments responsible for enforcing policy that is based on the Swedish climate targets. It was also decided that state aid would be implemented as a measure to support the commercialization of innovation in the industry and with that the “Industrial Leap fund” was launched.
“The Swedish support programs are essential for the establishment of new large-scale industry in Sweden. The funds from the Industrial Leap now signal that there is national backing for one of Sweden’s largest industrial projects. It also contributes to some levelling of the playing field, in relation to steel companies in Europe that have received large support packages. This creates the prerequisites for us to build up a long term sustainable and competitive industry in Sweden,” says Henrik Henriksson, CEO Stegra.
Implementing change towards sustainable solutions in the steel industry has historically been slow and subsidies to the high-emitting incumbent players have been high. This is beginning to change with the revised Emission Trading System where the free allocation is gradually phased out, and the Carbon Boarder Adjustment Mechanism, which is phased in step by step. State aid can be used to help speed up change until those regulation changes are fully implemented, as well as to level the playing field between established players and new cleantech companies. For highest impact, state aid should be allocated to the most efficient projects.
“Swedish industrial companies have the potential to become world leaders while contributing to the green transition of society as a whole. Initiatives within the Industrial Leap are of great importance for both the climate and the competitiveness of our industry,” says Caroline Asserup, Interim Director General at the Swedish Energy Agency.
Stegra’s Boden plant is the industry initiative that avoids the most emissions per invested Swedish Krona. Our application entails on average 28 kg of CO2-avoidance per support-krona. No other Swedish project achieves as big positive climate impact per invested support-krona as Stegra.
All Stegra’s climate calculations are based CINEA’s methodology. CINEA is the European Climate, Environment and Infrastructure Executive Agency and the European Commission agency which manages decarbonization and sustainable growth. The calculations have been verified by an external expert (DNV) and all the input data has been validated by an independent auditor (PWC) via an ISRS4400 audit.
Click to read more funding news.
Read the orginal article: https://arcticstartup.com/stegra-granted-about-e100-million/
