Stegra increased its operating losses in 2024

Steel startup Stegra, formerly known as H2 Green Steel, reported operating losses of just over SEK 2 billion ($209 million) for 2024, compared to SEK 657 million a year earlier. This was reported by Ny Teknik.

At the same time, CEO Henrik Henriksson sees this as a positive indicator that the project in Boden, Sweden, with a total budget of SEK 75 billion, is on track. Last year, approximately SEK 10 billion was spent on construction, and the company is currently investing around SEK 500 million per week. In addition, personnel costs have risen sharply following a large-scale recruitment drive – the company now employs a thousand people, including consultants.

The project is financed by private investors, loans, and government support. Last year, Stegra raised about SEK 8 billion from investors, the same amount in loans, and SEK 1.2 billion in government support through Industriklivet (the Industrial Leap program).

However, this year, the company was denied 1.65 billion Swedish kronor in support from the Swedish Environmental Protection Agency and Klimatklivet. The reason is significant carbon emissions, as natural gas will be used in the process until Stegra achieves fossil fuel-free status in 2045.

It should be noted that Stegra is building a large-scale plant for the production of environmentally friendly steel in Boden. It will consist of an electrolyzer, a direct reduction unit, two electric arc furnaces, as well as cold rolling and finishing shops. Production is expected to start in the second half of 2026, with the plant reaching full capacity in 2028. Once completed, the plant will produce 2.5 million tons of green steel annually.

Stegra and Swedish mining company LKAB have reached an agreement in principle and plan to jointly carry out test deliveries of iron ore pellets at the end of 2026, after the completion of track work on the railway. These pellets will be used at the Stegra plant to produce green hydrogen, sponge iron, and steel.