Swedish Green Steel Startup Stegra Completes $1.59 Billion Funding Round

By Dominic Chopping

STOCKHOLM--Green steel startup Stegra completed a $1.59 billion funding round led by a consortium formed by Sweden's prominent Wallenberg family, allowing it to complete construction of its new steel plant.

Stegra, formerly known as H2 Green Steel, is building a large-scale steel mill in northern Sweden that will replace the coal traditionally used for iron ore-based steelmaking with hydrogen produced from renewable energy. Stegra expects to produce steel that cuts carbon dioxide emissions by 95% compared to the traditional process.

It agreed on the 1.4 billion euro ($1.59 billion) financing in principle earlier this year, subject to certain approvals, but the round has now been completed.

The Wallenberg Investments-led consortium consists of IMAS, Temasek, Bolero and the SEB Foundation, which together become majority owners in the company.

A large group of existing shareholders also invested further, including Altor, Kobe Steel, Scania and Schaeffler, among others.

In conjunction with the funding round, a new holding company known as Stegra Holding has been formed, which is owned by investors in the new funding round and holds over 90% of Stegra.

A separate company known as Green Nexus Investment Holding holds the investments made prior to the new financing round and is a minority shareholder in Stegra.

Having previously raised more than 6.5 billion euros from debt and equity, Stegra said last year that it was seeking fresh capital to progress the project as it contended with higher costs, extended infrastructure plans and timelines, and a shortfall in state grants.

It is now in the process of ramping up construction activities. The project timeline is under review.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

June 24, 2026 04:15 ET (08:15 GMT)