Today, the Swedish Energy Agency announced that Stegra has been granted about €100 million from the Industrial Leap for its establishment of a fully integrated near zero emission steel production facility in Boden. Earlier this year, the European Commission approved, under the EU State aid rules, a €265 million Swedish measure made available in part through the Recovery and Resilience Facility to support Stegra (previously H2GS AB) in setting up a large-scale green steel plant. In its decision the European Commissions pointed out that investments like Stegra are important for reaching EU's climate targets. Today’s decision by The Swedish Energy Agency, accounts for a part of the total budgeted amount.

Implementing change towards sustainable solutions in the steel industry has historically been slow and subsidies to the high-emitting incumbent players have been high. This is beginning to change with the revised Emission Trading System where the free allocation is gradually phased out, and the Carbon Boarder Adjustment Mechanism, which is phased in step by step. State aid can be used to help speed up change until those regulation changes are fully implemented, as well as to level the playing field between established players and new clean-tech companies. For highest impact, state aid should be allocated to the most efficient projects.

Stegra’s Boden plant is the industry initiative that avoids the most emissions per invested Swedish Krona. Our application entails on average 28 kg of CO₂-avoidance per support-krona. No other Swedish project achieves as big positive climate impact per invested support-krona as Stegra. 

All Stegra’s climate calculations are based on CINEA’s methodology. CINEA is the European Climate, Environment and Infrastructure Executive Agency and the European Commission agency which manages decarbonization and sustainable growth. The calculations have been verified by an external expert (DNV) and all the input data has been validated by an independent auditor (PWC) via an ISRS4400 audit.