The Wallenberg family rescues Europe’s flagship green steel project with a €1.4 billion financing round

Stegra,  formerly H2 Green Steel,  has agreed in principle on new financing led by a Wallenberg Investments consortium including Temasek and IMAS. Construction at its Boden plant had slowed during months of fundraising. The Wallenbergs will become the company’s largest shareholder.

Stegra, the Swedish green steel company formerly known as H2 Green Steel, has agreed in principle on €1.4 billion ($1.65 billion) in new financing to complete the construction of what would be the world’s first large-scale green steel plant, located in Boden in northern Sweden.

The round is led by a consortium assembled by Wallenberg Investments, which also includes Singapore’s Temasek and the IMAS Foundation.

The Wallenberg family will contribute €250 million and, upon closing, will become Stegra’s largest shareholder. Existing investor Altor will be the second largest owner.

Hy24 and Just Climate, both existing shareholders, are also supporting the round. Senior and ...