Major Swedish green steel producer dismisses 'Northvolt concerns':'Our case has become stronger'

Stegra, previously known as H2 Green Steel, is one of Sweden's largest green projects currently underway, and in an interview on Wednesday with the newspaper Dagens Industri, the company's CEO Henrik Henriksson discusses the green steel company's multi-billion project in Boden.

The green mega-project shares the same founder, financing model, and even some owners and customers as battery producer Northvolt, which went into administration earlier this year.

However, Henriksson is not worried about meeting the same fate as its sister company. In the interview, he states that the company's business case has become stronger, both for banks and investors.

He highlights several factors that make Stegra's calculations look more favourable today than when the company secured its massive funding of 75 billion kronor. One such factor is that the electricity market has stabilised at a low level after the price surges following Russia's invasion of Ukraine.

"We will have margins that are double those of the existing steel industry," Henriksson explains.

He also points out that the so-called green premium, which refers to how much extra customers are willing to pay for green steel, has increased.

"We started with a green premium of 25 percent, and now we are closer to 35 percent," he says.

Stegra plans to commence production in 2026. The company aims to produce steel using hydrogen-reduced iron sponge, a process that significantly reduces carbon dioxide emissions.

He highlights several factors that make Stegra's calculations look better today than when the company secured its massive funding of 75 billion kronor. One of these factors is that the electricity market has stabilised at a low level after the price increases following Russia's invasion of Ukraine.

"We will have margins that are double those of the existing steel industry," Henriksson says.

He also points out that the so-called green premium, which refers to how much extra customers are willing to pay for green steel, has increased.

"We started with a green premium of 25 percent, and now we are closer to 35 percent," he says.

Stegra plans to start production in 2026. The company aims to produce steel using hydrogen-reduced iron sponge, a process that significantly reduces carbon dioxide emissions.