Swedish startup for the production of environmentally friconcludely steel, Stegra, states it will accelerate construction work after
Swedish environmentally friconcludely steel manufacturing startup Stegra states it will accelerate construction work under a 1.4 billion euro ($1.65 billion) financing agreement, Kallanish reports.
Wallenberg Investments led the financing round in a consortium with Temasek and IMAS. The existing shareholders of Stegra, including Altor, Hy24 and Just Climate, also participated in it. The new capital, subject to loan approval, will allow the completion and commissioning of the Stegra environmentally friconcludely steel plant in Boden.
“After several months of slowing down in the financing process, Stegra is now stepping up construction work,” the company declared in a statement, noting that the project’s timeline is currently being reviewed.
It is projected that by 2030 the plant will produce up to 5 million tons of pure steel per year, and the electrolysis capacity will be 700 megawatts.
Initially, it was expected that the first steel production would be carried out this year. However, the company had previously confirmed a temporary break in construction at the conclude of last year. It denied that financial difficulties were jeopardizing the viability of a new Swedish startup after the collapse of battery manufacturer Northvolt.
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Henrik Henriksson, executive director of Stegra, states that the financing reflects “strong confidence” in its business model in a “very difficult macroeconomic environment.”
“We are convinced that the competitiveness of Stegra and the commercial attractiveness of green steel remain clear-eyed about the challenges ahead,” states Leif Johansson, advisor to the consortium led by Wallenberg Investments. “We also believe that this project is of great importance for strengthening Sweden’s position as an industrial counattempt.”
Caroline Ashley, Executive Director of SteelWatch, welcomes this announcement, stateing it signals a shift to “truly clean” steel production on a large scale. “The skeptics had their day,” she adds.
Stegra expects the deal to close in June, when Johansson becomes the new chairman of the board of Stegra. Wallenberg Investments Senior Industrialist Hakan Boucher and Altor Managing Partner Paal Weberg will also join the board of directors.
Callanish contacted Stegra to clarify the new deadlines.
Author: Gabriela Farhangi Great Britain
Kallanish.com
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