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Revolutionary Stegra – steel with minimal CO2 emissions

Some 8 percent of global CO2 emissions stem from the steel industry. This is a footprint that Stegra, formerly H2 Green Steel, one of the industry’s major innovators, wants to change. With financing from SEK and a consortium of international banks, Stegra is currently constructing a new steel plant in Boden, with the aim of promoting investment in green industry and of reducing carbon emissions. And this is just the start.

Green steel

Facts

Transaction: Project financing
Amount: EUR 500 million
Maturity: 12.75 years
Borrower: Stegra (formerly H2GS Boden AB)
Year: 2023

Facts

Transaction: Project financing
Amount: EUR 500 million
Maturity: 12.75 years
Borrower: Stegra (formerly H2GS Boden AB)
Year: 2023

Stegra is harnessing revolutionary technology with the aim of reducing carbon emissions from steel production up to 95 percent and is constructing a new, fully integrated, digitalized and automated steel plant in Boden to produce green steel. Locating the steel plant in Boden brings renewable energy generated by hydro and wind power to the plant’s doorstep.

“No one has scrutinized our project more closely than those backing our financing. The strong support from lenders such as SEK is a stamp of approval for our company. It also represents a major climate victory since we hope that this model will inspire the financing of other initiatives that can transform industries that remain major sources of GHG emissions into fossil-free industries.”

Henrik Henriksson, CEO of Stegra

SEK has entered into an agreement to finance the new steel plant together with a consortium of international banks and is backed by green credit guarantees from instances including the Swedish National Debt Office.

An essential part of our daily lives, steel is used in everything from vehicles to buildings and kitchen appliances. Despite its significance, the steel industry is one of the world’s largest sources of CO2 emissions and accounts for some 8 percent of global CO2 emissions – compared with aviation’s 2 percent.

“Phasing out fossil fuel in the steel industry will play an important role in reaching the global targets for reduced CO2 emissions. SEK’s desire to support the export industry’s transition is one of the reasons behind our financing of Stegra’s Boden steel plant.”

Magnus Montan, CEO of SEK

Stegra’s ambition – steel is only the beginning

H2 Green Steel was founded in 2020 with the ambition of accelerating the green transition of the steel industry. By replacing coal in steel production with green hydrogen powered by fossil-free electricity, almost all CO2 emissions are removed and water and heat become the primary emissions. In the long term, Stegra is not just targeting the steel industry – the company aims to use green hydrogen to reduce CO2 emissions from other heavy industries.

Katarina Daniels Head of Communications, SEK

Would you like to know more?

Contact Katarina Daniels, Head of Communications, for more information.

katarina.daniels@sek.se

+46 72 080 68 85

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