Sweden has approved 390 million SEK (about $41 million) in funding for Stegra, a hydrogen-powered green steel startup developing a next-generation steel plant in Boden. The grant, issued through the country’s Industrial Leap program, is designed to strengthen Stegra’s financial position as it works to close the remaining funding gap for its large-scale project. The company has already raised billions through loans, equity, and earlier state support, but still requires additional capital to complete construction.
Stegra’s facility aims to replace coal-based steelmaking with renewable-powered hydrogen instead, a shift expected to cut carbon emissions by up to 95% compared with traditional blast furnaces. The project is regarded as a significant step toward decarbonising one of the world’s most polluting heavy industries. With this new funding, Sweden is reinforcing its commitment to becoming a global hub for fossil-free steel and accelerating Europe’s broader push toward climate-neutral industrial manufacturing. More