Stegra receives first €100 million of Swedish state aid

Steel startup Stegra, formerly known as H2 Green Steel, has received the first €100 million in state aid from the Swedish government. The company said in a statement.

The total amount of this support package approved by the European Commission is €265 million.

According to Stegra CEO Henrik Henriksson, the allocation of funds signals that there is national support for one of the country’s largest industrial projects.

“It also contributes to a certain leveling of the playing field in relation to steel companies in Europe that have received large support packages, and creates the preconditions for a long-term stable and competitive industry in Sweden,” he said.

Stegra is currently building a large-scale green steel plant in Boden. It will consist of a 690 MW electrolytic cell, a direct reduction unit, two electric arc furnaces, as well as cold rolling and finishing shops. The plant is expected to be commissioned in 2026.

The company is also the recipient of a €250 million grant from the EU’s Innovation Fund, which is supported by revenues from the Emissions Trading System (ETS).

In September 2024, H2 Green Steel announced a rebranding, changing its name to Stegra. In addition, the company announced potential projects outside Sweden that are currently under study. What they have in common is that they are located in areas where customers need help in reducing carbon emissions in the value chain, locations with good access to renewable electricity, and reliable grid connection. Among the projects under consideration are locations in Portugal, Canada, and Brazil.