Stegra, formerly known as H2 Green Steel, is a Swedish company founded in 2020 with the goal of reducing carbon emissions in hard-to-carbonise industries, with a focus on steel production. The company is building an integrated plant in Boden, Norrbotten, combining the production of green hydrogen, green iron and green steel. By replacing coal with green hydrogen in the reduction process of iron ore, Stegra aims to reduce CO2 emissions by up to 95%.
Stegra’s business encompasses the production of green hydrogen through electrolysis, the reduction of iron ore to iron, and further processing into steel—all integrated within a single facility currently under construction in Boden, Sweden. The site is expected to reach an annual production capacity of up to five million tonnes of steel by 2030. The facility will be powered by renewable energy sources, primarily hydropower and wind, with water for electrolysis sourced from the Lule River.
Stegra has signed long-term supply agreements with several industrial players, particularly in the automotive and construction sectors. Customers include companies such as Scania, Mercedes-Benz, Volvo Group, and Ingka Group, the owner of IKEA. These agreements typically span five to seven years.
Stegra produces and sells low-emission materials, primarily targeting customers seeking to reduce their value chain emissions. Revenue is generated from the sale of iron, steel, and related products. The company is building its business around long-term supply contracts, industrial partnerships, and large-scale investments in new technology.
The financing of the Boden facility includes both equity and debt, totaling over €6 billion. Investors include Vargas Holding, institutional investors, and international banks. Stegra also collaborates with technology providers specializing in electrolysis and steelmaking.
Since its founding, Stegra has secured environmental permits and commenced construction of its Boden plant. The project also includes agreements for iron ore supply, energy and logistics partnerships, and the development of both local and international networks.
Production is slated to begin in 2026. In addition to its Swedish operations, Stegra has initiated feasibility studies for similar projects in other countries, including Portugal and Canada. The company aims to establish an industrial model that can be scaled to markets with abundant renewable energy resources.
How it works in 6 simple steps:
How it works in 6 simple steps:
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