Stegra has launched a financing round to raise around €975m to complete the construction of its green hydrogen-based steel plant in Boden, Sweden.

The Swedish company announced that the proceeds from the round are expected to represent up to 15% of its total project funding. Last year, Stegra secured up to €6.5bn  to develop the plant.

The new capital will help offset higher construction costs, fund a three-month project extension, and replace state grants approved by the European Commission but not yet disbursed by the Swedish government.

The round will comprise a mix of equity, debt, outsourcing, and strategic partnerships.

“We have progressed more than 60% of the project and have clear visibility and a detailed plan for the full runway up to completion, including a timeline extension of three months to accommodate the additional scope,” explained Henrik Henriksson, Stegra CEO.

“We will now continue to advance the project with the additional strength that will be provided by this new financing round.”

The financing will also support the in-sourcing of “mission-critical assets,” such as railway and port investments that were originally expected to be delivered by external partners.

By bringing them in-house, Stegra said it will gain greater control over the construction schedule and project execution.

Once the Boden plant is operational, with 700MW of electrolysers installed adjacent to the plant, it will initially produce up to 2.5 million tonnes of steel per year.