Green steel startup Stegra completes $1.6 billion in funding

The Wallenberg Investements consortium, which led the EUR1.4 billion ($1.6 billion), financing round for Stegra, a Swedish startup that is building Europe's first hydrogen-fueled steel plant, announced on Wednesday it had completed its financing round. The financing is a welcome reprieve for Stegra, one of Europe's few large green steel projects. High costs and challenges in scaling up hydrogen produced with green energy had forced many planned projects to be curtailed.

Hakan Buskhe is the head of Wallenberg Investments' special investments and an incoming Stegra Board member. Stegra announced in April that it had secured EUR1.4 billion - new financing from Sweden's Wallenberg Family, subject to approvals. This funding will provide a lifeline to the green steel factory.

Sweden has been at the forefront of Europe's efforts in shifting from fossil fuel-based industries to nonpolluting energy. The country's green transformation has faced some challenges, including the bankruptcy of Northvolt, a battery manufacturer.

Stegra announced?on Wednesday that the financing received 100% approval by the Stegra lender group, and it would be able to access undrawn debt facilities that were part of its financing round for 2024.

It stated that it would be stepping up construction at its site in Boden and the project timeline was being reviewed. In a separate statement describing Stegra's newly formed board, Harald Mix was not listed as a member. He was Stegra co-founder and co-founder of Northvolt.

Leif Johansson, a Wallenberg veteran, will be the chairman of the new board.

(source: Reuters)