Stegra has secured €1.4 billion in financing to complete construction of its plant

The project schedule is being revised following several months of delays in construction work

Swedish startup Stegra has secured €1.4 billion in funding from new and existing investors, ensuring the completion of its flagship green steel plant in Boden. This was announced in a company statement.

The funding round is led by Wallenberg Investments, which has formed a consortium of investors (including Temasek and IMAS)—thanks to this deal, it will take a leading position in Stegra. The financing is also supported by the startup’s existing shareholders, including Altor, which will become the second-largest shareholder upon closing of the deal, Hy24, and Just Climate, as well as—subject to loan approval—senior and junior lenders.

This provides Stegra with a fully funded path to complete the construction and commissioning of its green steel plant, the company said in a statement.

“We are convinced of Stegra’s competitiveness and the commercial appeal of green steel, as well as its climate benefits, while clearly understanding the challenges ahead. We also consider this project to be of utmost importance for Sweden’s position as an industrial nation,” noted Leif Johansson, an advisor to the consortium led by Wallenberg Investments.

The investors intend to nominate Johansson for the position of chairman of Stegra’s board of directors.

The additional €1.4 billion in financing will be used to complete construction of the plant in Boden. This includes previously announced scope of work expansions, such as insourcing certain infrastructure components, covering increased project costs, and establishing a prudent financial buffer.

After several months of funding delays, Stegra is ramping up construction work—the project schedule is currently being revised.

As noted, the financing has been agreed in principle and is contingent upon lender approval and the finalization of documentation. In addition, standard closing conditions will apply, including regulatory approvals. The signing of the main agreements is expected to take place in late April, with the financing round closing in June 2026.

As a reminder, in March 2026, the Turkish Koç Group became one of Stegra’s new shareholders. At that time, it was reported that in November 2025, the startup announced that an additional 10 billion Swedish kronor was needed to complete construction of the plant in Boden. However, according to sources at the Swedish newspaper Dagens Industri, the amount more than doubled as a result of subsequent negotiations with financiers.

Last fall, the startup received a government grant from Sweden in the amount of 390 million kronor ($40.9 million, approximately €37 million). The support was provided on the condition that the company secure the funds to complete the project by spring 2026.