Awarded via the Swedish Energy Agency’s Industrial Leap programme, the authority said the support would increase the green steel startup’s chances of securing additional capital.

The latest award brings Stegra’s total Swedish grants to around €137m ($150m) – less than the €265m ($292m) package previously approved by the European Commission.

The Swedish Energy Agency added that further support is conditional on Stegra demonstrating full project financing by spring 2026.

Stegra has secured €6.5bn ($7.15bn) in loans and equity for the plant and recently launched a €975m ($1.07bn) financing round to cover rising costs and replace state aid that has yet to be disbursed.

“There is still a gap to what the EU has approved, and we hope that further steps can be taken to close it and provide a more level playing field in relation to other projects,” CEO Henrik Henriksson said.

Nevertheless, Henriksson added that the agency’s decision gives Stegra “the possibility to strengthen Swedish and European competitiveness.”

The Swedish steel producer plans to begin production at Boden in 2026.

The site will feature 740MW of electrolysis capacity from Thyssenkrupp, a direct reduced iron (DRI) plant, two electric arc furnaces, and cold rolling and finishing facilities.

By 2030, Stegra expects to produce five million tonnes of green steel per year.

Microsoft recently signed a supply agreement with the firm to purchase green steel from Boden for use in components manufactured for its global data centre network.