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On November 26, Reuters reported that the Swedish government said on Wednesday it had provided 390 million Swedish kronor (about US$41 million) in funding to green steel startup Stegra to help the company advance its steel plant construction project in northern Sweden.
The Swedish Energy Agency stated that the project "has the potential to accelerate the transformation of the steel industry," and that related support will enhance Stegra's ability to secure subsequent financing.
Stegra previously disclosed that it had secured approximately €6.5 billion (about $7.5 billion) in loans and equity financing last year. B30P120-LM oriented electrical steel, In October 2025, the company announced plans to raise up to $1.1 billion in additional funding to complete the steel plant project.
The plant plans to use renewable electricity to produce hydrogen on-site and use hydrogen as a reducing agent in ironmaking, achieving low-carbon steel production.
The Swedish Energy Agency also emphasized that this grant is conditional, and Stegra must prove by the end of spring 2026 that it has raised sufficient capital to complete the project; otherwise, the support will be adjusted.
Sweden has been at the forefront of Europe's transition away from fossil fuels, relying on low-cost, carbon-free electricity to drive industrial upgrading. B30P120-LM oriented electrical steel, However, its green transformation has also encountered considerable resistance and setbacks, such as the bankruptcy of battery manufacturer Northvolt.
Stegra CEO Henrik Henriksson stated this month that the company has secured nearly half of the required funding, with the remaining funds expected to be obtained through bank financing within six months. He pointed out that the additional government funding will send a strong signal to banks and investors, demonstrating the Swedish government's support for the project.
Stegra added that the company had previously received SEK 1.2 billion under a joint Swedish-EU support scheme, but another SEK 1.6 billion had not yet been disbursed. B30P120-LM oriented electrical steel, While only a portion of the additional funding has been secured, it is sufficient to propel the project into the next phase of financing and significantly enhance its competitive level with other similar green steel projects in Europe.
