Swedish green steel producer Stegra announced Monday that it plans to raise approximately EUR 975 million in additional capital to fund the construction of its northern Sweden plant and bolster its financial position. 

The company, formerly known as H2 Green Steel, had previously secured EUR 6.5 billion in financing for the Boden facility, which will produce steel using hydrogen generated on-site from renewable electricity. 

Sweden has emerged as a leader in Europe's shift away from fossil fuel-based industries, capitalizing on its access to inexpensive, carbon-free power. However, this transition has faced setbacks, including the bankruptcy of battery manufacturer Northvolt. 

Industries difficult to electrify directly, such as steelmaking and long-haul transportation, were initially considered ideal candidates for green hydrogen adoption. However, these sectors are now finding that switching to low-carbon hydrogen fuel may be economically prohibitive.