The steel project Stegra in Boden needs at least another ten billion SEK to be completed. This is reported by two independent sources to Affärsvärlden.

The announcement comes just months after the company completed a financing round of 1.4 billion euros, around 15 billion SEK, which was then described as sufficient to take the project all the way to a finished facility and the start of production.

According to Affärsvärlden, at least another ten billion SEK in liquidity is now needed. Stegra’s head of communications, Karin Hallstan, declined to comment on the information but confirmed that the board will hold a regular meeting this week.

The financing was supposed to last all the way

In April, Stegra announced that a new financing round of 1.4 billion euros had been agreed in principle. The round was led by a consortium under Wallenberg Investments together with, among others, Temasek and IMAS. It was completed in June.

When the package was presented, the message was that the money would be enough to complete the factory and get production started.

“With the money we have raised now, we have a buffer that will take us all the way to the end of the project and ramp up,” said CEO Henrik Henriksson to SVT this spring, according to Affärsvärlden’s summary.

Even then, however, there were experts warning that about another ten billion SEK might need to be raised at a later stage.

Recurring capital problems

Stegra’s financing problems became acute at the end of 2025. In the autumn, the company initially stated that about ten billion SEK needed to be secured to complete the project. In March, SVT reported, referencing Dagens industri, that the capital requirement had instead grown to about 20 billion SEK.

At the same time, information emerged that contractors at the construction site were waiting on payments totaling several hundred million SEK. Stegra then responded that there could be multiple reasons why invoices had not been paid, and that the company had no debts registered with the Swedish Enforcement Authority.

The new financing round with Wallenberg Investments then became a key part of attempts to stabilize the project.

The state also backs the project

The project also has extensive public funding and guarantees. The Swedish National Debt Office’s loan guarantee to Stegra’s lenders covers 80 percent of loans totaling 13.5 billion SEK, which corresponds to a maximum guarantee of around 10.8 billion SEK. The authority announced in April that the guarantee had not been expanded in connection with the latest financing round.

Stegra has previously raised tens of billions of SEK in equity and loans for the steel mill in Boden, which is intended to produce steel with significantly lower carbon dioxide emissions than traditional blast furnace production.

New revenues from Google

As recently as September, Stegra announced that Google will purchase so-called environmental attribute certificates linked to up to 91,000 tons of steel during the first year. According to the company, the deal will provide additional cash flow and help finance the building up of operations.

Despite this, Affärsvärlden’s sources now claim that Stegra needs at least another ten billion SEK to bring the project to completion. If the information is correct, it means that the capital needed is once again much greater than what the company’s management communicated as recently as this spring.