Swedish green iron and steel maker Stegra announced that it has closed a €1.4 billion (USD$1.6 billion) financing round, enabling the company to complete the construction of the world’s first large-scale green steel plant in Boden, Sweden.

The completion of the financing will provide a major lifeline to the project, which had slowed development pending the outcome of the financing process.

Founded in 2020, Stegra is building its first large scale low-carbon steel plant in Boden, aimed at producing 5 million tonnes of green steel annually. The company’s process utilizes hydrogen produced using green power to remove the oxygen from iron oxide, avoiding most of the CO2 emissions normally produced, and uses electricity from 100% renewable sources for the energy requirements generated in the manufacturing process.

Construction of the plant began in 2022, and by early 2024 the company said that it had secured €6.5 billion in funding for the plant. In October 2026, in a significantly tougher environment for clean tech capital, Stegra revealed that it had entered a new financing round in order to secure funds to complete the project.

The company announced in April 2026 that it had secured the €1.4 billion financing round in principle, subject to approvals.

The new financing round is led by Sweden’s Wallenberg family’s foundation’s Wallenberg Investments, alongside a consortium of investors including existing investors Temasek and IMAS and new investors Bolero and SEB-Stiftelsen.

A new holding company, Stegra Holding AB, owned by the investors in the new financing round now holds over 90% of the shares and votes in Stegra, and former Volvo Group CEO Leif Johansson has been appointed as the new chair of the board, representing the Wallenberg Investments-led consortium. Johansson succeeds Shaun Kingsbury who chaired the board of Stegra over the past several quarters and who remains on the board.

The new funding round was also supported by existing investors, including Altor, now the second largest shareholder, as well as Hy24 and Just Climate, as well as AMF, AP2, Climate Infrastructure Fund, Kallskär, Kobe Steel, Lingotto Innovation, Scania, Schaeffler, Security Trading* Stena Metall Finans and Swedbank Robur.

Stegra CEO Henrik Henriksson said:

“We are grateful for the support for the work we are doing in bringing near zero emissions steel to the market from both new and existing investors, as well as from lenders. It’s a strong sign of confidence in our business case and the project.”

Stegra said that it is in the process of ramping up construction activities in Boden, and that the project timeline is under review. The plant had previously been expected to start operations in 2026.