Stegra Appoints Ex-SAAB CEO, Seeks More Funds for Pioneering Green Steel Plant

Swedish green steel pioneer Stegra has wrapped up a 100-day internal review of its flagship mega-project in Boden, Sweden, revealing that building the world’s first large-scale green steel plant will cost far more than initially budgeted. Despite locking in a massive €1.4 billion ($1.6 billion) funding package in June 2026, the company confirmed it now needs to raise additional capital to finish construction. The announcement comes alongside a leadership shakeup: former SAAB chief Håkan Buskhe is stepping in as CEO, replacing Henrik Henriksson, who had led the firm since 2021.

Founded in 2020, Stegra aims to produce 5 million tonnes of low-carbon steel per year at the Boden facility. By replacing fossil fuels with green hydrogen and running operations entirely on renewable electricity, the plant cuts oxygen from iron oxide with a fraction of the carbon emissions of traditional steelmaking.

Stegra's Green Steel Plant Faces Financial Upsurge

Construction of the plant started in 2022, and by early 2024, the company announced it had secured €6.5 billion to fund the endeavor. However, by October 2025, amidst a challenging climate for clean tech financing, Stegra disclosed its entry into another financing round to collect the necessary funds for project completion. A turning point came this past June when Sweden’s Wallenberg family, acting through Wallenberg Investments alongside a consortium of investors, injected €1.4 billion ($1.6 billion) into the company. The move handed the new investor group control of over 90% of shares and voting rights, prompting the appointment of former Volvo Group CEO Leif Johansson as board chairman. Despite the company confirming that the green steel production timeline and the business case remained robust, it conceded that additional capital was imperative due to unexpectedly high completion costs. These were attributed to considerable ramp-up expenses following earlier work reductions and prevailing inflationary pressures.

Stegra Strengthens Strategy for Steel Plant Financing

• Johansson initially believed the existing financing would be sufficient but anticipated possible additional needs.
• Now, with a full understanding of the project, Johansson acknowledges that the financing needs exceed initial expectations.
• Developed a solid plan to complete the project, including increased outsourcing and partnerships.
• The company has engaged in discussions with major shareholders who are eager to help secure the necessary capital.
• Talks with shareholders, financiers, partners, and other stakeholders are highly active.
• Johansson's confidence in Stegra and the business opportunities post-completion of the steel plant has increased since their start in June.
• The team is actively collaborating with all company stakeholders to address the financing requirements.