“>Swedish green steel startup Stegra said on Tuesday it had raised 1.4 billion euros ($1.7 billion) from an investor consortium led by the Wallenberg family, providing a lifeline to complete construction of its greenfield plant.
The financing provides a reprieve for one of the few remaining large green steel projects in Europe, where high investment costs and the challenges of scaling green hydrogen have forced several planned projects to be delayed, downsized or cancelled.
Stegra, formerly known as H2 Green Steel, has sought for months to raise more cash to finish its flagship hydrogen-based steel plant in northern Sweden.
“This financing reflects the strong conviction in Stegra’s business model among new and existing investors, as well as lenders,” CEO Henrik Henriksson said in a statement.
Henriksson later told a press conference that he would not announce a specific start for production but that there would be a gradual phased ramp-up of operations.
Start of production has been pushed back several times, with the latest indications being 2027 prior to this funding news.
Wallenberg provides backing
Europe has been at the forefrontof efforts to decarbonise steelmaking to meet its climate targets, but developers have slowed or halted investments in green hydrogen, raising doubts over how quickly industries can move away from fossil fuels. The Wallenberg-led consortium also includes Singapore state investor Temasek and IMAS Foundation, an investment arm within the IKEA sphere.
Wallenberg Investments said it had committed to investing 250 million euros. Its chair, Marcus Wallenberg, said the project had “clear importance to Sweden” and the group saw “a commercially viable way forward”.
The Wallenberg family is Sweden’s most influential business dynasty, controlling firms worth hundreds of billions of dollars, including SEB, Ericsson, Atlas Copco, Electrolux and Investor AB .
The new financing has been agreed in principle, and is subject to credit approvals from lenders and finalisation of documentation, Stegra said.
The investors intend to nominate Wallenberg-veteran Leif Johansson as new board chair. Johansson has previously held the chairman role at companies such as Ericsson and AstraZeneca, and been CEO of Electrolux and Volvo Group.
