Stegra in Emergency Meeting – Urgent Need for Billions More

After Northvolt’s crash, there has been speculation about whether the next green house of cards to fall will be Stegra, which also is facing an increasingly dire economic situation. According to sources, the situation has now deteriorated significantly and the end may be near.

Previously known as H2 Green Steel, Stegra was, like Northvolt, praised by both politicians and business leaders. But now the company is reportedly in an increasingly pressured position and needs twice as much money just to avoid collapsing.

This means that the capital needed to even complete the green steel project in Boden, according to Dagens industri, is over 20 billion kronor. As recently as last autumn, the company claimed it “only” needed ten billion.

Last week it was reported that Stegra could run out of money in just weeks and that efforts were being made to attract new investors to provide capital, in parallel with negotiations to get banks to release credit. According to sources, Stegra has secured approval from several shareholders in a new financing round.

Chaotic Atmosphere

The doubled capital requirement is described as alarming, and the serious situation has led to investors being urgently called to a crisis meeting on Wednesday. Sources describe the acute situation as chaotic and the conduct as unprofessional. The exact reason behind the sudden doubling is unclear.

Previously, actors such as the Wallenberg family and state representatives were viewed as possible rescuers, but the sharply increased capital need could completely change the situation.

Facts about Stegra

Stegra was founded in 2020 with the goal of drastically reducing the carbon footprint of steel production. The plant in Boden is to produce steel using hydrogen, which would cut emissions by up to 95 percent.

The project has received extensive financial support, including 100 million euros in state aid and another 250 million euros from the EU Innovation Fund.

The total cost of the plant in Boden is estimated at 6.5 billion euros.

According to Professor Lars Sandström at Luleå University of Technology, the risk of bankruptcy is “significant”.