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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The world's leading green steel project, located in Boden, Sweden, needs another 975 million euro (US$1.1 billion) to get the project over the line due to rising costs.
Start-up Stegra (Boden) - formerly H2 Green Steel - has launched a new funding round that will represent up to 15% of the total project funding, comprising a mix of "new equity, debt, outsourcing and selected strategic partnerships." It comes 18 months after the company raised more than 4.2 billion euro (US$4.8 billion) in project financing, including a major grant from the European Union (EU). For additional information, see February 06, 2024, article--World's Biggest Green Steel Project Raises $4.5 Billion. The project failed to get a promised US$173 million grant from Sweden's Environmental Protection Agency after it found that projected emissions from Boden would be higher than initially claimed.
Construction is continuing on the green steel plant, and an associated 700-megawatt (MW) electrolysis plant, which will create green hydrogen using renewable energy, to power its steel-making process. Stegra claims that its steel will have 95% lower CO2 emissions than steel made with coke-fired blast furnaces. The plant will initially produce 2.5 million tons of green steel per year, with a planned ramp-up to 5 million tons by 2030.
Stegra said that the new financing round aims to fund additional scope related to insourcing of certain infrastructure, "cover higher project costs, secure a prudent financial buffer and offset state grants that were not fulfilled despite approval from the European Commission". Last month, the company inked a deal with Microsoft (Redmond, Washington) to supply green steel for some of its forthcoming data center projects.
Industrial Info is tracking 14 Stegra green steel and iron projects in Spain, Norway, Brazil and Canada, worth more than US$15 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
"We have progressed more than 60% of the project and have clear visibility and a detailed plan for the full runway up to completion, including a timeline extension of three months to accommodate for the additional scope," said Henrik Henriksson, chief executive officer of Stegra.
"We will now continue to advance the project with the additional strength that will be provided by this new financing round," Henriksson continued. "The strong backing from our founders and lead investors, who are firmly committed to this project, is another testament to Stegra's strong business case. Stegra has a unique position in the green steel landscape with a strong order book, a competitive cost position, and proven execution capabilities."
The project will use 20-megawatt (MW) "scalum" alkaline water electrolysis (AWE) modules from thyssenkrupp nucera, part of Germany's Thyssenkrupp (Essen). Each module measures 40 meters long and nine meters high. In total, the plant will have a total electrolysis capacity of 700 MW, enough to produce 100,000 tonnes of green hydrogen per year. Start-up times have slipped on the project, with the original commissioning moved from sometime in 2025 to a phased start in 2026, followed by a full-scale ramp in 2027. By 2028, the company aims to reach steady-state operations across the green hydrogen, green iron and green steel plants.
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, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Start-up Stegra (Boden) - formerly H2 Green Steel - has launched a new funding round that will represent up to 15% of the total project funding, comprising a mix of "new equity, debt, outsourcing and selected strategic partnerships." It comes 18 months after the company raised more than 4.2 billion euro (US$4.8 billion) in project financing, including a major grant from the European Union (EU). For additional information, see February 06, 2024, article--World's Biggest Green Steel Project Raises $4.5 Billion. The project failed to get a promised US$173 million grant from Sweden's Environmental Protection Agency after it found that projected emissions from Boden would be higher than initially claimed.
Construction is continuing on the green steel plant, and an associated 700-megawatt (MW) electrolysis plant, which will create green hydrogen using renewable energy, to power its steel-making process. Stegra claims that its steel will have 95% lower CO2 emissions than steel made with coke-fired blast furnaces. The plant will initially produce 2.5 million tons of green steel per year, with a planned ramp-up to 5 million tons by 2030.
Stegra said that the new financing round aims to fund additional scope related to insourcing of certain infrastructure, "cover higher project costs, secure a prudent financial buffer and offset state grants that were not fulfilled despite approval from the European Commission". Last month, the company inked a deal with Microsoft (Redmond, Washington) to supply green steel for some of its forthcoming data center projects.
Industrial Info is tracking 14 Stegra green steel and iron projects in Spain, Norway, Brazil and Canada, worth more than US$15 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
"We have progressed more than 60% of the project and have clear visibility and a detailed plan for the full runway up to completion, including a timeline extension of three months to accommodate for the additional scope," said Henrik Henriksson, chief executive officer of Stegra.
"We will now continue to advance the project with the additional strength that will be provided by this new financing round," Henriksson continued. "The strong backing from our founders and lead investors, who are firmly committed to this project, is another testament to Stegra's strong business case. Stegra has a unique position in the green steel landscape with a strong order book, a competitive cost position, and proven execution capabilities."
The project will use 20-megawatt (MW) "scalum" alkaline water electrolysis (AWE) modules from thyssenkrupp nucera, part of Germany's Thyssenkrupp (Essen). Each module measures 40 meters long and nine meters high. In total, the plant will have a total electrolysis capacity of 700 MW, enough to produce 100,000 tonnes of green hydrogen per year. Start-up times have slipped on the project, with the original commissioning moved from sometime in 2025 to a phased start in 2026, followed by a full-scale ramp in 2027. By 2028, the company aims to reach steady-state operations across the green hydrogen, green iron and green steel plants.
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, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
