The Wallenberg Family Rescues Europe’s Flagship Green Steel Project
Stegra, formerly known as H2 Green Steel, has secured €1.4 billion ($1.65 billion) in new financing, led by a consortium including The Wallenberg Investments, Temasek, and IMAS. This deal promises to revive construction on what would be the world’s first large-scale green steel plant located in Boden, northern Sweden.
The Wallenbergs, alongside existing investors Altor, will contribute significantly to this round, becoming the company’s largest shareholder upon closing. The announcement ends a period of financial uncertainty for Stegra, with construction at the plant previously slowing during their fundraising efforts.
Leif Johansson, an advisor to the Wallenberg-led consortium and a prominent Swedish industrial figure, expressed both optimism and caution:
"We are convinced of the competitiveness of Stegra and the commercial attractiveness of green steel… while remaining clear-eyed about the challenges ahead."
The investment’s significance extends beyond its financial backing. A source close to the situation told Dagens Industri: "You have to see this as more than an investment. The Wallenbergs’ coming in means that Stegra will become part of the elite of Swedish industry and will never be allowed to go bankrupt."
Key Details:
- Financing Round: €1.4 billion
- Led by: Wallenberg Investments (with Temasek and IMAS)
- Shareholders: Wallenbergs (largest), Altor (second largest), Hy24, Just Climate
- Timeline: Targeted signing of principal agreements end-April, closing June 2026.
- Board Changes: Leif Johansson (Chair), Håkan Buskhe (Wallenberg Investments), Paal Weberg (Altor) expected to join.