Stegra plans to start operating in 2026
Stegra, formerly known as H2 Green Steel, says it fully intends to start commercial production in about a year, said Stefan Flapper, head of commercial department at Stegra, speaking at the Kallanish Europe Steel Markets 2025 in Amsterdam on Wednesday.
The company plans to supply both environmentally friendly steel and environmentally friendly HBI, as it believes that more than half of the declared HBI production capacity will not actually be put into operation.
Stegra plans to produce 21 million tons of DRI per year and 2.5 million tons of steel per year using electric steelmaking equipment and tile cutters. Then this figure can be increased to 5 million tons per year. The plant plans to produce HRC and CRC pellets. Stegra, a DRI and scrap metal company, also plans to sell some HBIS to regional steel producers.
The plant in Sweden is still under construction, and significant work remains to be done. However, the company hired a large construction crew for the summer, when the days on the construction site are very long.
"We have a huge demand for[green steel]," Flapper said. This is largely due to the fact that steel accounts for a significant share of atmospheric emissions in many key production products, but a relatively small share of total costs. This means that reducing greenhouse gas emissions from steel production is the most efficient and cost-effective way for subsequent manufacturers to decarbonize their products.
Despite this, according to Flapper, a large number of planned DRI/HBI projects are unlikely to be commissioned. By 2030, the additional demand for DRI/HBI may reach 32 million tons. The announced projects will more than cover this figure, and the planned capacity commissioning will amount to 47 million tons per year. However, financial and other problems mean that Stegra expects that in 2030 the additional capacity will be used by only 21 million tons per year. This will account for almost half of the capacity in Europe and the Middle East, with a small contribution from other regions.
This is one of the reasons why Stegra is looking for growth options outside of the facility it is currently building in Sweden.
Thomas Gutierrez Great Britain
kallanish.com