Stockholm-based Stegra has secured an in-principle €1.4 billion financing round led by Wallenberg Investments, which has assembled a consortium including Temasek and IMAS, alongside continued backing from existing investors such as Altor, Hy24, and Just Climate. The company develops a large-scale green steel plant in Boden, aiming to decarbonize one of the world’s most emissions-intensive industries by using hydrogen-based production. The fresh capital will be used to complete construction of the facility, cover rising project costs, bring certain infrastructure components in-house, and establish a financial buffer, positioning the project on a fully funded path toward commissioning.
Founded to decarbonise steelmaking, one of the world’s most carbon-intensive industries, Stegra is building a large-scale facility that will produce steel using hydrogen-based processes instead of coal. The company positions the Boden plant as a cornerstone project for Europe’s green industrial transition, with ambitions to supply low-emissions steel to sectors such as automotive and construction.
“This financing reflects the strong conviction in Stegra’s business model among new and existing investors, as well as lenders. It has been achieved in a very challenging macro-environment and reflects significant efforts by everyone involved, including of course investors and banks, but also the team in Stegra and the extended family of suppliers, customers and other close partners in Boden,” says Henrik Henriksson, Stegra’s CEO.
The newly secured capital will be used to complete the construction and commissioning of the plant, while also covering cost increases and previously announced scope expansions. These include bringing certain infrastructure components in-house, as well as establishing a financial buffer to mitigate execution risks in a volatile macroeconomic environment. Once closed, the round is expected to strengthen the company’s balance sheet through a higher equity ratio, giving Stegra what it describes as a fully funded path to completion.
The financing comes after several slower months for the project as the company focused on securing capital amid tighter global funding conditions. With the round now agreed in principle, Stegra plans to ramp up construction activity, although the overall project timeline remains under review.
“The investors will bring additional significant industrial expertise, and their investment reinforces Stegra’s position and the project’s Swedish anchoring. They represent values aligned with both Stegra’s purpose and team,” says Henriksson.
Beyond capital, the deal also brings increased industrial oversight. Investors have signalled their intention to appoint Leif Johansson as chair of the board following completion of the transaction, succeeding current chair Shaun Kingsbury, who is expected to remain on the board. Additional board changes are anticipated, including the proposed appointments of Håkan Buskhe and Paal Weberg.
The agreement remains subject to regulatory approvals and final documentation, with signing expected by the end of April and closing targeted for June 2026. If completed as planned, the round would mark a significant milestone not only for Stegra but also for Europe’s broader push to build competitive, low-carbon industrial capacity at scale.
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Read the orginal article: https://arcticstartup.com/stegra-raises-e1-4bn/
