The Boden facility is expected to start producing green steel in 2026. It will have a 690 MW electrolysis capacity, a direct reduced iron (DRI) plant, two electric arc furnaces, and facilities for cold rolling and finishing. The plant aims to produce five million tonnes of steel per year by 2030.

Stegra claims that using green hydrogen in the DRI process can cut CO2 emissions from steel production by about 95% compared to traditional methods that use blast furnaces.

The funding comes from the Industrial Leap fund, which was established under Swedish climate legislation. Stegra says this project will save 28 kg of CO2 for every Swedish krona of support received.

The company, formerly known as H2 Green Steel, states that no other Swedish project achieves as significant a positive climate impact per invested krona as Stegra.

CEO Henrik Henriksson said that this funding helps level the playing field with other European steel companies that have received substantial support.

In June, the European Commission approved an additional €265 million (2.7 billion kronor) for the Boden plant.

Henriksson added:

– This creates the foundation for us to build a long-term, sustainable, and competitive industry in Sweden.

Earlier this year, Stegra secured €4.2 billion (47.7 billion kronor) in debt financing for the plant and has pre-sold its green steel to buyers such as Volvo Group, Porsche, and ZF, bringing its total financial package to €6.5 billion (73.7 billion kronor).