Stegra's €6.5 Billion Green Steel Plant Funding: How Europe's Low-Carbon Steel Mill Is Financed

Stegra, formerly H2 Green Steel, closed a €1.4 billion equity round in June 2026, bringing total committed funding for its low-carbon steel plant in Boden, Sweden, to €6.5 billion. The plant will use 700MW of electrolysis to produce green hydrogen for direct reduced iron, targeting 5 million tonnes of steel annually by 2030 with up to 95% lower CO2 emissions than blast furnaces. The capital stack blends public grants from the EU Innovation Fund, commercial debt, and diverse equity from investors like Temasek, Wallenberg Investments, and Hy24. A key signal is that second-lien lenders converted debt to equity, showing confidence in project viability. This financing model is a test case for scaling green industrial projects in hard-to-abate sectors. The article breaks down the H-DRI process, the strategic location in northern Sweden for cheap hydroelectric power, and the implications for global electrolyser deployment. It is a concrete look at how blended finance is being used to decarbonize steelmaking at scale.