Stegra’s Green Steel Plant in Boden Faces Key Challenges Ahead of Planned 2026 Launch
Stegra's green steel production facility in Boden aims for a 2026 launch, facing challenges with electricity supply and logistics.
Key Points
- • Stegra's plant is set to open in late 2026 with a goal of over 2 million tons of green steel annually.
- • CEO Henriksson stresses the importance of managing logistical and recruitment challenges.
- • Iron ore will be sourced from LKAB and international suppliers, with a focus on supply diversification.
- • Future expansion to 5 million tons per year is contingent on securing adequate electricity supply.
Stegra, a green steel production facility under construction in Boden, Sweden, is gearing up to begin operations by the end of 2026, with ambitious plans to produce over two million tons of green steel annually. CEO Henrik Henriksson, addressing investors at the company's inaugural capital markets day, highlighted the plant's strategic advantages over competitors like Northvolt, particularly in terms of customer adaptation to new green steel products.
Despite these prospects, the project is not without its challenges. Concerns are mounting regarding electricity supply, crucial for future production phases. Currently, Stegra has arrangements with LKAB to initiate trial runs of iron ore pellets by late 2026, while also looking to import iron ore from sources in Canada and Brazil to diversify its supply chain. Henriksson emphasized the importance of not becoming overly reliant on a single supplier, stating, "Att gå upp över 60 procent från en spelare, det vill man ändå inte."
Looking ahead, the second phase of production could see output ramped up to nearly five million tons per year. However, this expansion hinges on resolving ongoing electricity supply issues, with Henriksson mentioning, "Det hindrar oss från att ta beslut," underscoring the critical need for clarity on energy availability before significant investment decisions can be made.