Stegra (H2 Green Steel)
A €6.5 bn greenfield green-steel plant with 700 MW of electrolysers — the largest decarbonisation project finance in industry.
Footage · SUPERMETALPRICE · YouTube
approx €6.5bn
Total investment
Combined equity, ECA-backed and commercial debt financing
700 MW
Electrolyser capacity
Among the largest single-site electrolyser deployments globally
5 Mtpa
Steel capacity (target)
Phased ramp-up from initial lower output
Boden, Sweden
Location
Chosen for hydro/wind access and grid proximity
1,500-3,000
Jobs (approx)
Direct construction and operational employment estimates
H2-DRI + EAF
Technology route
Hydrogen direct reduction feeding electric arc furnace
2020-2021
H2 Green Steel founded; Boden, northern Sweden selected for access to hydropower, wind and rail/port logistics.
2022
Construction begins on integrated green steel and hydrogen electrolyser complex.
2023
Large project financing package closed, combining equity, Swedish export credit agency (EKN) backing and commercial bank debt, approx €6.5bn total capex.
2024
Company rebrands as Stegra; offtake and supply agreements advanced with automotive and industrial customers.
2024-2025
Grid reinforcement and renewable power agreements progressed to match 700 MW electrolyser demand.
2025 onward
Phased commissioning targeted, ramping toward full 5 Mtpa green steel capacity.
Stegra (formerly H2 Green Steel) is building a 5 Mtpa hydrogen-based green steel plant in Boden, Sweden, backed by one of the largest industrial decarbonisation financings ever assembled — approx €6.5bn combining equity, export credit cover and commercial debt. For Indian developers, lenders and utilities exploring green hydrogen, green steel or heavy-industry decarbonisation, it is a template for structuring bankable offtake, sizing electrolyser-grid interfaces, and sequencing construction against renewable power availability — all directly relevant to India's own emerging green steel and hydrogen hub ambitions under National Green Hydrogen Mission.
India's National Green Hydrogen Mission and emerging green steel policy discussions mirror Stegra's core challenge: matching gigawatt-scale electrolyser and renewable capacity to industrial offtake within grid constraints. Indian tenders for green steel/hydrogen hubs (e.g., in Gujarat, Odisha, Andhra Pradesh) should require early transmission studies, ECA-blended financing structures, and binding offtake before bid evaluation — reducing the financing and schedule risks Stegra encountered.
Engineering, procurement and finance lessons
01
Match electrolyser scale to grid reality early
700 MW of electrolysis demanded upfront coordination with the transmission operator years before commissioning; grid capacity in northern Sweden became a binding constraint, forcing phased ramp-up. Indian projects must engage state/central transmission planners at concept stage, not after financial close.
02
Blend equity, ECA cover and debt for first-of-kind risk
The approx €6.5bn financing stacked strategic equity, export credit agency guarantees and commercial debt to de-risk a technology without long operating history. Indian lenders financing green steel/hydrogen should similarly layer concessional, ECA and commercial tranches rather than rely on single-source debt.
03
Offtake agreements de-risk construction financing
Long-term supply contracts with industrial buyers (notably automotive) gave lenders revenue visibility before plant completion. Indian green steel developers should prioritise binding offtake with domestic and export buyers ahead of financial close.
04
Co-locate with renewable-rich, grid-adjacent sites
Boden's proximity to hydro and wind resources reduced power procurement risk and cost. Site selection in India should weight renewable resource quality and transmission headroom as heavily as logistics and labour access.
05
Expect schedule slippage on first-of-kind mega-projects
Construction and commissioning timelines have extended beyond original targets, a common pattern for first-of-kind heavy industry-hydrogen integration. Indian project sponsors and lenders should build contingency and phased-ramp clauses into financing covenants.
Sources · Reuters · Bloomberg · Financial Times · Swedish Export Credit Agency (EKN) public statements · Stegra company disclosures
- Structuring blended finance (equity, ECA, concessional, commercial debt) for green steel/hydrogen project bankability.
- Advising on grid-interconnection sequencing and transmission planning for large electrolyser and renewable co-located loads.
- Supporting offtake negotiation, PPP structuring and tender design for Indian green hydrogen and green steel hub programmes.