Stegra has reached an agreement in principle for financing to complete its green steel facility in Boden, Sweden.
The company said the €1.4 billion in funding is led by Wallenberg Investments, alongside Temasek and IMAS, with support from existing shareholders including Altor, Hy24 and Just Climate.
Stegra added that the financing creates a fully funded path to construction and commissioning of the facility, subject to approvals and final documentation.
The funds will be used to complete construction, cover increased project costs and support infrastructure expansions within the project scope.
Construction activity is set to accelerate following a slower period during the funding round, with the project schedule under review.
“The financing reflects the strong confidence in Stegra’s business model from both new and existing investors, as well as from our lenders,” said Henrik Henriksson, chief executive of Stegra.
“Reaching this agreement in a very challenging macroeconomic situation is a result of significant efforts from everyone involved, including investors and banks, but also the team at Stegra and our broader network of suppliers, customers and other close partners in Boden.”
“We are convinced of Stegra’s competitiveness and the commercial viability of green steel, in addition to its climate benefits, while being fully aware of the challenges that remain,” said Leif Johansson, advisor to the consortium led by Wallenberg Investments.
“We also believe that the project is of great importance for Sweden’s position as an industrial nation.”