Sweden's Stegra secures $1.65 billion investment for hydrogen-based steel plant
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- Wallenberg Investments leads investor consortium
- Originally planned start date of 2026 currently under review
Japan Metal Daily: Stegra (formerly known as H2 Greensteel), a Swedish start-up that is building a hydrogen generation plant and a 2.5 mnt integrated steel plant, announced on 14 April that it has reached a basic agreement to raise a total of EUR 1.4 billion (about $1.65 billion) from new and existing investors. This is said to have secured funds for the construction and operation of the factory in Boden.
Stegra had financial difficulties last year due to increased construction costs. Construction has been stagnant in recent months, but the company plans to resume plant construction with an additional EUR 1.4 billion. The originally planned start date of 2026 is being reviewed.
The funding was led by Wallenberg Investments, which is run by a wealthy Swedish family, and Wallenberg will undertake EUR 250 million of the EUR 1.4 billion. Valenberg will form a consortium with Singaporean sovereign wealth investment firm Temasek and IMAS, and the consortium will become Stegra's largest shareholder. Existing shareholder Altor will also make an additional investment and become the second largest shareholder.
Financing is expected to be carried out in June after a definitive agreement and regulatory approval. After completion, Stegra's board of directors will be chaired by Leif Johansson, an advisor to Wallenberg Investments.
"We are convinced of the competitiveness of Stegra, the commercial attractiveness of green steel, and its benefits in climate action, and this project is crucial for Sweden to establish itself as an industrial country," Johansson said in a statement. Marcus Valenberg, Chairman of Wallenberg Investments, said: "This is a large and complex business, and success depends on a multifaceted and strong execution.
Note: The article is published as part of an article sharing agreement between Japan Metal Daily and BigMint
