Stegra Secures 7-8 Billion Kronor Funding from Wallenberg Family for Green Steel Plant
Stegra AB has obtained funding commitments from the Wallenberg family, totaling up to 8 billion kronor ($755 million) as part of a 15 billion kronor funding effort. This investment aims to ensure the continuation of the world's largest green-steel plant in Boden, Sweden, amidst challenges in securing financing for climate-friendly industrial projects.
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Stegra AB has secured commitments of 7 to 8 billion kronor from the Wallenberg family, becoming the largest shareholder in the company. This funding is part of a broader 15 billion kronor financing initiative that will allow Stegra to access approximately 25 billion kronor for the construction of its green-steel facility in Boden, Sweden.
The funding comes as lenders will permit the company to utilize about 10 billion kronor from previously frozen loans. Stegra has raised around €6.5 billion since inception, but faced challenges in financing due to a shift in market sentiment towards climate initiatives. The Swedish Energy Agency is set to provide 390 million kronor in public grants contingent on securing additional funds by spring 2026.
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