The steel company H2 Green Steel was launched in 2020 with the aim of producing almost fossil-free steel on a large scale in northern Sweden, more specifically in Boden.
The company was founded by Vargas Holding, led by Harald Mix. Vargas Holding also co-founded battery manufacturer Northvolt, which went bankrupt as recently as last year.
H2 Green Steel, which changed its name to Stegra in 2024, has, like Northvolt, faced many headwinds. For Stegra, these included issues regarding electricity supply.
More capital
The company has been under financial pressure for a long time, partly due to general inflation and partly due to increased costs.
Last fall, co-founder Harald Mix stepped down as chairman of the company. Shortly before that, Stegra had announced that it needed an additional SEK 10 billion in new capital, including investments in the port of Luleå and new railway tracks at the factory site in Boden.
Some analysts have pointed out that the steel project could fail and as recently as March this year, Bloomberg reported that Stegra's money was about to run out.
However, after speculation, Stegra announced on April 14 that the Wallenberg family will step in as the largest owner. Stegra will receive 1.4 billion euros, approximately 15 billion kronor, from a consortium led by Wallenberg Investments.
Moved forward
The money will go toward completing construction of the facility in Boden. Former Volvo CEO and Ericsson Chairman Leif Johansson has been proposed as the new chairman of Stegra's board.
The start of production for the crisis-hit steel project has been pushed back, but the plan is to start producing steel early next year. The plan is to produce 2.5 million tons of so-called green steel per year at the newly built plant in Boden.
