Swedish green iron and steel maker Stegra announced a new €1.4 billion financing round, securing the funds necessary to complete the construction of the world’s first large-scale green steel plant in Boden, Sweden. Construction on the project had slowed, pending the outcome of the financing process

The financing round is being led by a €250 million equity investment by Sweden’s Wallenberg family’s foundation’s Wallenberg Investments, alongside a consortium of investors including Temasek and IMAS. Under the terms of the agreement, which remains subject to credit approvals from the lenders and finalization of documentation, the consortium will take a leading ownership position in Stegra following the transaction.

Marcus Wallenberg, Chair of Wallenberg Investments, said:

“This is an industrial project of clear importance to Sweden. Based on our thorough assessment, we see a commercially viable way forward. That said, this remains a major and complex undertaking, and success will depend on strong execution across many dimensions. Taking these complexities into account, we enter this endeavor with a willingness to be deeply engaged going forward.”

Founded in 2020, Stegra is building its first large scale low-carbon steel plant in Boden, aimed at producing 5 million tonnes of green steel annually. The company’s process utilizes hydrogen produced using green power to remove the oxygen from iron oxide, avoiding most of the CO2 emissions normally produced, and uses electricity from 100% renewable sources for the energy requirements generated in the manufacturing process.

Construction of the plant began in 2022, and by early 2024 the company said that it had secured €6.5 billion in funding for the plant. In October 2026, in a significantly tougher environment for clean tech capital, Stegra revealed that it had entered a new financing round in order to secure funds to complete the project.

Stegra said that the new financing will provide the company “with a fully funded path to complete the construction and commissioning” of the new green steel plant. The plant had previously been expected to start operations in 2026, although the company said that the project timeline is now under review, following several slower months during the funding activities. Stegra said that it will now ramp up construction activities.

Stegra added that the new funding round is also supported by existing shareholders, including Altor who will be the second largest owner post-closing, as well as Hy24 and Just Climate.

Stegra CEO Henrik Henriksson said:

“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.”

Following the financing round, Stegra said that the investors have agreed to nominate Leif Johansson as the new Chair of the Board. Johansson previously served as CEO of Volvo Group, as well as Chair of the Board of AstraZeneca and Ericsson.

Johansson said:

“We are convinced of the competitiveness of Stegra and the commercial attractiveness of green steel in addition to the climate benefits, while remaining clear-eyed about the challenges that lie ahead. We also consider the project to be of great importance to Sweden’s position as an industrial nation.”