Stegra receives additional EUR 37 million support for zero-emission steel plant
The Swedish Energy Agency has announced that Stegra has received approximately EUR 37 million in additional state aid from the Industrial Leap program for its planned fully integrated, zero-emission steel production facility in Boden.
Stegra had previously secured a EUR 100 million grant from the Industrial Leap program as part of the EUR 265 million Swedish support package approved by the European Commission under EU State Aid rules in September 2024 and partially financed through the Recovery and Resilience Facility. With the newly announced EUR 37 million in additional funding, the total amount of public support allocated to the project has increased significantly.
Commenting on the development, Stegra CEO Henrik Henriksson stated: “We are grateful for the decision by the Swedish Energy Agency. This support enables us to strengthen the competitiveness of Sweden and Europe. There is still a gap within the limits approved by the EU, and we hope further steps will be taken to close this gap and ensure a more level playing field with other projects.”
The company’s project in Boden is regarded as an important step in accelerating Europe’s transition to fossil-free steel production.
Stegra bets on Sines, Portugal
Swedish greenfield venture H2 Green Steel is changing its name to Stegra, Kallanish learns. The company also says its prospective project in Portugal has received power allocation.
H2 Green Steel was launched in 2021 to build the world’s first large-scale green steel plant, with start of production scheduled in 2026. “The team continues to prove that it is possible to do more and to change things fast, also in an industry that has for a long time been considered difficult to decarbonise. As we continue this journey, we leave our more descriptive project name behind, and take on the name Stegra, which reflects our long-term ambitions,” says company chief executive Henrik Henriksson.
“Stegra is a Swedish word which means ‘to elevate’,” Henriksson explains. “It is a constant reminder of the company’s purpose and honours our Swedish roots and where it all began in Boden (northern Sweden).”
Stegra also notes it has a “solid funnel of potential projects” outside of Sweden that are being explored as part of a longer-term outlook. It is looking at locations which offer abundant access to renewable electricity and strong grid connections. Locations under consideration include Portugal, Canada and Brazil.
“Presently, a project in Portugal, where the site selection has been made and land reserved near Sines, is the most advanced. Notification on substantial allocation of the power needed has been made to Stegra and our local value chain partnerships continue to evolve,” says Henriksson.
The firm said in June it was looking at Portugal as a viable location for HBI production (see Kallanish passim).
Christian Koehl Germany
