InnoEnergy portfolio company Stegra has agreed in principle on €1.4 billion in new financing, led by a consortium under Wallenberg Investments, to complete the construction and commissioning of its green steel plant in Boden, Sweden. Principal agreements are expected to be signed by end of April, with the round closing in June 2026.
A fully funded path to completion
The plant, currently under construction in northern Sweden, will be one of Europe’s first large-scale facilities to produce steel using green hydrogen and renewable electricity – cutting CO₂ emissions by up to 95% compared to conventional methods. With construction more than 60% complete, this financing provides Stegra with a fully funded path to completion, covering expanded project scope, increased costs, and the establishment of a prudent financial buffer.
“This financing reflects the strong conviction in Stegra’s business model among new and existing investors, as well as lenders,” said Henrik Henriksson, CEO of Stegra, noting that the result was achieved in a challenging macro-environment and reflects the sustained efforts of investors, lenders, the Stegra team, and its broader network of suppliers, customers, and partners.
Leif Johansson, adviser to the Wallenberg Investments-led consortium and incoming Chair of the Board, added that the investors are “convinced of the competitiveness of Stegra and the commercial attractiveness of green steel in addition to the climate benefits,” while acknowledging the challenges that remain ahead.
Decarbonising heavy industry at scale
For InnoEnergy, decarbonising energy-intensive industries like steel is not only about cutting emissions – it is about strengthening Europe’s industrial resilience, reducing strategic dependencies, and securing long-term competitiveness.
Stegra brings this into focus. By rethinking how steel is produced, it shows how low-carbon industry can be built in Europe while reinforcing its industrial base. The scale and structure of this financing demonstrate that even the most complex, capital-intensive projects can be delivered and funded, ultimately turning ambition into industrial reality.
Rooted in Sweden and relevant for the whole Europe, we congratulate the entire Stegra team on this milestone.
Read Stegra’s full press release here.
