Stegra AB, the Swedish startup constructing the world’s largest green steel plant in Boden, northern Sweden, is laying the groundwork for a potential public listing as it anticipates funding needs beyond the private market’s capacity.
With €6.5 billion already secured — one-third from equity and two-thirds from debt — the four-year-old firm is set to begin producing green steel by the end of 2026, targeting an annual output of 2.5 million tons. A proposed Phase 2 would double production, but according to CEO Henrik Henriksson, further expansion may require tapping public capital markets.
“We’re preparing for it,” Henriksson said at Stegra’s first capital markets day, while emphasizing that no timeline has been set for an IPO. “Beyond Phase 2, it’s a lot of money — even with strong investors behind us.”
Stegra is part of a new generation of low-emissions steelmakers attempting to transform one of the world’s most carbon-intensive industries, responsible for roughly 7% of global CO₂ emissions. Unlike traditional blast furnaces, Stegra will use hydrogen produced from renewable energy, positioning itself as a leader in sustainable heavy industry.
Henriksson confirmed that Stegra has raised its EBITDA forecast for 2030 by 10%, now expecting €1.2 billion, thanks to higher green steel price premiums. The expected return on capital employed for Phase 1 is projected to exceed 20%, well above industry norms.
Key Challenge: Grid Connection for Phase 2
A significant hurdle for expansion is the lack of a confirmed grid connection for Phase 2. Without a secure electricity supply, an investment decision for the second phase is off the table. Henriksson said he hopes for clarity on this by early 2026.
Stegra is backed by Vargas Holding AB, a Swedish impact investment group that also launched Northvolt AB, the EV battery startup that collapsed under cash strain. While there are similarities in funding models, Henriksson stressed that Stegra’s business and steel product are fundamentally different, citing strong industrial demand and robust long-term supply contracts.
“We want to finish Boden, prove the model, and show we can generate money,” Henriksson concluded.
