Stegra has reached an agreement in principle for €1.4 billion (USD $1.6bn) in new financing, providing a fully funded path to finish construction and commissioning of its flagship green steel facility in Boden, Sweden. The funding round is led by a consortium headed by Wallenberg Investments, alongside Temasek and IMAS, while receiving robust support from existing shareholders such as Altor, Hy24, and Just Climate.
The fresh capital will address increased project costs, the insourcing of infrastructure components, and the creation of a financial buffer, resulting in a more resilient equity ratio. Following a period of reduced activity during the fundraising phase, Stegra is now prepared to ramp up construction, with the final closing of the round expected in June 2026.
“This financing reflects the strong conviction in Stegra’s business model among new and existing investors, as well as lenders,” says Henrik Henriksson, Stegra’s CEO. “It has been achieved in a very challenging macro-environment and reflects significant efforts by everyone involved.”
Leif Johansson, adviser to the Wallenberg-led consortium and nominee for the new Chair of the Board, emphasised the strategic value of the project. “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,” Johansson says. “We also consider the project to be of great importance to Sweden’s position as an industrial nation.”
Henriksson added that the new partners reinforce the project’s roots. “The investors will bring additional significant industrial expertise, and their investment reinforces Stegra’s position and the project’s Swedish anchoring,” he says.
