Low-carbon steel developer Stegra has confirmed that its green steel project in Boden, northern Sweden, remains on track to begin production in the second half of 2026, despite delays in state aid. 

The European Commission approved EUR 265 million in funding in 2024, though only EUR 100 million has been disbursed so far. 

The project’s first phase, now under construction, includes two electric arc furnaces, a 690 MW electrolyzer, a direct reduction plant, and rolling facilities, designed for 2.5 million tons of annual output. 

Stegra expects emissions to be cut by 95% compared to conventional steelmaking, while noting that some natural gas use will remain in the carburization process. 

A potential second phase could expand capacity to 5 million tons per year. 

Stegra is updating its aid application and exploring additional financing to secure the remaining funds.