Stegra has launched a new financing round to support the construction of its large-scale green steel plant in Boden, Sweden. The company said initial commitments from existing equity investors have been secured, with total proceeds from the round expected to represent up to 15pct of the project’s overall budget, or close to EUR 1 bln (USD 1.15 bln) . Funding will include a mix of equity, debt, outsourcing arrangements, and strategic partnerships.
CEO Henrik Henriksson said the backing from founders and lead investors underlines confidence in Stegra’s business case, citing a strong order book, competitive cost position, and proven execution capacity. He added that more than 60pct of the project has already been completed, with a revised timeline extended by three months to accommodate additional scope.
The round aims to cover higher costs, provide a financial buffer, and address state grants that were approved by the EU Commission but not disbursed. It will also fund the insourcing of critical infrastructure such as railway and port facilities, originally intended to be developed by external parties, along with additional groundwork and cost inflation in materials and construction.
Despite progress, Stegra faces mounting financial challenges. According to a Financial Times report, insolvency risks were discussed at a recent board meeting after delays and cost overruns. The company is currently burning through about EUR 280 mln (USD 324 mln) per month and could exhaust cash reserves within two months without access to existing debt commitments.
Henriksson rejected what he called a one-sided portrayal, stressing that discussions with investors remain constructive. Just Climate, one of Stegra’s largest shareholders, reaffirmed its support, calling the project complex and transformational with significant progress achieved.
The company has also delayed certain parts of the plant, such as a galvanizing line, to preserve cash, and is exploring outsourcing options for some hydrogen and power assets.
The financing round comes against a difficult backdrop for Europe’s green steel sector, where several projects have been postponed or abandoned amid high energy costs that weigh on demand.
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