Green steel startup Stegra has secured €1.4 billion ($1.6 billion) in equity funding to build Europe's largest green steel plant in Boden, Sweden. The facility will use green hydrogen from renewable electricity to replace coal in steelmaking, cutting carbon emissions by up to 95% compared to conventional blast furnaces. Wallenberg Investments led the round, with support from Temasek, Hy24, Just Climate, and Altor. The project aims to produce 2.5 million metric tons of green steel annually in its first phase, with potential expansion to 5 million tons. Northern Sweden's abundant hydropower and wind energy provide low-cost electricity for the electrolyzers. This funding closes months of uncertainty for the project and signals continued investor confidence in industrial decarbonization, despite broader headwinds facing green hydrogen and steel projects in Europe.
