Vital Funding for Leading Green Steel Project in Europe

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Construction is expected to accelerate at Europe's leading green steel project in Boden, Sweden, following an injection of 1.4 billion euro (US$1.7 billion) led by private investment firm Wallenberg Investments.

The future of Sweden's major green steel project in Boden has been secured with a financial round raising 1.4 billion euro (US$1.7 billion) to help finish construction. 

Located in Boden in northern Sweden, the completed plant will be capable of producing 5 million tonnes of green steel per year from 2030 when fully commissioned. It is being developed by Stegra - formerly H2 Green Steel - and according to Industrial Info Resources data, there are four active Boden projects underway worth US$2.7 billion. Subscribers to Industrial Info Resources' Global Market Intelligence (GMI) Project Database can click here for the reports. Stegra is also involved in a number of other green-steel ventures. Industrial Info Resources is tracking 10 Stegra green steel and iron projects in total in Sweden, Norway and Brazil, worth more than US$5.5 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

New Funding

This funding round was led by a consortium created by family-led industrialists, Wallenberg Investments, which contributed 250 million euro (US$294 million), giving it a leading position in the company. Other investors included Temasek and IMAS. Wallenberg has assets worth in excess of US$40 billion, including ABB, AstraZeneca, Nasdaq, Electrolux, Ericsson, Husqvarna, Saab AB and Wärtsilä, among others. Last October Industrial Info Resources reported that Stegra needed up to US$1 billion to finish the plant. At that time it had already raised more than 4.2 billion euro (US$4.9 billion) in project financing, including a major grant from the European Union (EU). For additional information, see October 22, 2025 article - World's Leading Green Steel Project Needs $1 Billion. Henrik Henriksson, Stegra's chief executive officer, 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."

The Project

The green steel plant will use 20-megawatt (MW) "scalum" alkaline water electrolysis (AWE) modules, powered by renewable energy, from thyssenkrupp nucera, part of Germany's Thyssenkrupp. Each module measures 40 meters long and nine meters high. In total, the plant will have a total electrolysis capacity of 740 MW, enough to produce 100,000 tonnes of green hydrogen per year. At the start of this month, Stegra confirmed that it had completed the installation of all 37 AWE modules. "The modules, which were delivered in more than 800 containers to our plant, are now coming together to form what will become Europe's largest green hydrogen production facility, " it stated. "There's still work ahead before the hydrogen plant is complete, but this is an important step forward for our entire Boden site. With all 37 modules in place, we are now moving into the next phases of pre-commissioning and commissioning, critical steps in maintaining momentum toward full site completion and operational readiness." When production starts, the plant is aiming to produce 2.4 million tonnes of decarbonised steel per year, ramping up to 5 million tonnes by 2030. 

Slipping Deadlines

Project startup times have slipped over the years; the original commissioning was set for 2024. First steel is now expected in 2027, although that date has been pushed out on a number of occasions as construction work has slowed due to funding delays and rising costs. Last week, the company stated: "After several slower months during the funding activities, Stegra will now ramp up construction activities. The project timeline is under review."

Key Takeaways

• Construction to speed ahead at Europe's leading green steel project in Boden, Sweden, following a 1.4 billion euro (US$1.7 billion) investment bump.
• The project has just completed the installation of 37 alkaline water electrolysis (AWE) modules, each rated at 20 MW, for hydrogen production.
• The plant aims to start green steel production in 2027, ramping up to 5 million tonnes per year by 2030. 

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).