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Swedish green steel startup Stegra has completed a EUR 1.4 billion (USD 1.59 billion) financing round led by a consortium backed by Sweden’s Wallenberg family. The funding marks a major milestone for the company as it moves ahead with the construction of Europe’s first hydrogen-based steel factory. The financing package received full support from both new and existing investors, along with unanimous approval from Stegra’s lender group. The development comes at a time when several green steel projects across Europe are facing delays or scale-backs due to rising costs and challenges associated with green hydrogen production.
Swedish green steel startup Stegra has completed its EUR 1.4 billion (USD 1.59 billion) financing round, securing the capital needed to advance the construction of its hydrogen-based steel manufacturing facility in Sweden.
The funding round was led by a consortium linked to Sweden's influential Wallenberg family and received strong backing from existing investors as well as the company's original lending partners. Stegra stated that the financing process has now been formally completed, with the lender group providing unanimous approval for the transaction.
The latest capital raise follows the company's announcement earlier this year that it had secured EUR 1.4 billion in fresh financing. The funding package was considered a crucial step in ensuring the completion of what is expected to become Europe's first large-scale steel plant powered by green hydrogen.
Stegra, formerly known as H2 Green Steel, is among a small number of companies attempting to transform one of the world's most carbon-intensive industries. The company aims to replace traditional coal-based steelmaking with hydrogen produced from renewable energy, significantly reducing carbon emissions associated with steel production.
The financing provides additional stability for one of Europe's most closely watched green industrial projects. In recent years, several proposed green steel developments across the region have faced difficulties due to high capital requirements, inflationary pressures, supply chain challenges and the complexity of scaling up green hydrogen production at a commercial level.
Against this backdrop, Stegra's ability to secure support from both investors and lenders highlights continued confidence in the long-term potential of low-carbon steel production despite broader industry challenges.
According to the company, the financing package also received 100% approval from its lender group, underscoring the level of support behind the project as construction progresses.
Source Reuters
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