Stegra has completed a €1.4 billion round of financing, which has given it much-needed capital to develop its near-zero emissions steel plant in the north of Sweden, at Boden. The funding is a significant step towards one of the EU's most closely followed industrial decarbonisation projects. The financing round was led by Wallenberg Investments together with other investors, both existing and new. The project has been gaining interest from investors, policymakers, and industrial buyers from across the region as the interest in green steel, industrial decarbonisation, sustainable manufacturing, climate infrastructure, and European supply security continues to grow.

The financing is especially important at this time for Stegra as construction continues at the Boden facility. The project's goal is to replace high-carbon steel production techniques with much lower carbon steel production techniques. The investment underlines the growing confidence in green steel, decarbonisation of industry, sustainable manufacturing and climate infrastructure and European supply security as major pillars of the European transition towards a more sustainable industrial economy.

Strong Investor Support Strengthens Project Outlook

In April 2026, the financing was agreed in principle and was subject to regulatory approval and customary closing conditions. Once the above requirements are met, the deal is now complete.

In addition to the existing investors, IMAS and Temasek, the consortium is led by Wallenberg Investments and also comprises of new investors, Bolero and SEB-Stiftelsen. The broad representation of current shareholders involved in the financing round also represents their continued support of the project. One of these is the shareholder Altor, which is expected to take a second bite at Stegra as its shareholder.

The company is backed by other investors such as Hy24, Just Climate, AMF, AP2, Climate Infrastructure Fund, Kallskär, Kobe Steel, Lingotto Innovation, Schania, Schaeffler, Security Trading, Stena Metall Finans and Swedbank Robur. Through their ongoing involvement they are showing their trust in the long-term sustainability of the project and the increasing demand for low emission industrial materials.

Lenders remain confident about the development.Lenders uphold their trust in the development.

Additionally, Stegra has been supported by a group of second lien lenders headed by AIP Management who will be direct equity investors. The company said the whole lender group endorsed the financing package and all banks involved are maintaining support for the project.

The company will also be able to access undrawn debt facilities, under its existing financing arrangements, for 2024. This will give extra financial flexibility as construction work ramps up on the Boden site.

Stegra Chief Executive Officer Henrik Henriksson said the financing was a good endorsement of the business model and strategic outlook. But investor and lender support is a sign of increased confidence in the commercial viability of near-zero emissions steel production, he said.

The construction phase has been strengthened in the balance sheet.

Stegra said the latest round of financing had bolstered the company's finances, as it raised its equity ratio and balance sheet. This new financial stability will enable the next step in building and project implementation.

The Wallenberg Investments-led consortium has resulted in more Swedish ownership, which Henriksson welcomed. He recognised the ongoing support from the Swedish National Debt Office and SEK, who have been steadfastly backing the financing, and have been participating with the stakeholders during the entire financing process.

As the project progresses, the company is assessing the project schedule for effective delivery of the large industrial facility.

This plant has strategic significance to Europe's industrial future.This plant is strategically important for Europe's industrial future.

In addition to the support from private investors, Stegra's project has also obtained support from public institutions. The project's strategic relevance in Europe's industrial and climate policies is highlighted by the support of the European Union Innovation Fund and the Swedish Energy Agency.

Steel is one of the hardest industries to decarbonise, as it is highly fossil-fuel intensive. Meanwhile, the construction, transportation and renewable energy sectors as well as manufacturing rely on steel.

Consequently, in European countries low-emission steel production is increasingly taking the centre of attention both environmentally and economically. Such initiatives as the Boden plant are expected to lead to emission reduction goals, help to build up regions supply chains and minimize reliance on imported materials.

Investors turn towards the opportunities in Industrial Decarbonisation.Investors turn to Industrial Decarbonisation opportunities.

Stegra's raising of the funds is seen as a sign of a trending change in climate-related investments. Although renewable energy has been the focus of climate finance, heavy industry is becoming a major focus for investors looking for long-term climate transition opportunities.

Håkan Buskhe, Head of Special Investments at Wallenberg Investments, and incoming board member of Stegra, explained the importance of the project to support Sweden’s competitiveness and the European Union’s goals to ensure supply security.

While risks to execution and delivery remain for the Boden project, the positive investor and lender support along with public institution investment gives strong foundations for future progress. The facility could be an example of commercial green steel production, and help to pave the way for sustainable industrial manufacturing in Europe and internationally.