Stegra received a $41 million government grant from Sweden

Support provided on condition that the company secures funding to complete the project by spring

Swedish green steel startup Stegra, which is seeking additional funding for its project, has received a government grant of SEK 390 million ($40.9 million, approximately €37 million).

The support currently received by the company is provided under the Industriklivet (“Industrial Leap”) program and has been preliminarily approved by the European Commission, with funding provided by the Swedish Energy Agency. The Stegra project previously received a grant from Industriklivet in the amount of SEK 1.2 billion. The company’s application for additional aid of SEK 1.6 billion was previously rejected, and this decision remains in force.

However, Stegra’s support depends on whether the company can demonstrate by spring 2026 that it has secured sufficient capital to complete the project.

As Clara Gelstad, deputy head of the Swedish Energy Agency’s research, innovation, and business development department, noted, the project’s goal remains important for the transformation of the ferrous metallurgy industry.

«Stegra’s investments in innovative solutions contribute to a significant leap forward in development. However, Industriklivet’s budgetary scope, based on the terms contained in the letter of appropriation, together with the support previously provided to Stegra, means that just over SEK 389 million is the maximum additional support that can now be provided,» she said.

In October, Stegra’s group of creditors turned to global investment bank Houlihan Lokey for advice as the company faces a funding shortfall. The startup was seeking up to €975 million in new financing to cover higher-than-expected project costs and previous delays with government grants. The company is building the world’s first large-scale green steel plant in Boden, Sweden.