The skeleton of Stegra's plant in Svartbyn, just outside Boden, is beginning to take shape. The first phase of production is scheduled to commence as early as late 2026, with the aim of producing over two million tonnes of green steel annually.
– Many of the hurdles have been overcome, says Stegra CEO Henrik Henriksson at the company's first capital markets day.
When directly asked how Stegra plans to avoid Northvolt's missteps, CEO Henrik Henriksson highlights the fundamental differences between the two companies. For instance, it's simpler for Stegra's customers to transition to their products.
– On Monday, you can use brown steel, and on Tuesday, you can use green. You don't need to make any infrastructure investments, says Henriksson, adding that the competitive landscape is also distinct:
– This is low-hanging fruit. There isn't a dominant green steel industry in China.
However, he acknowledges that there are lessons to be learned from Northvolt - particularly concerning recruitment and addressing housing needs. He also suggests that some of Northvolt's challenges themselves offer valuable insights.
– One project at a time. For us, it's Boden, Boden, Boden.
The project has faced several challenges, including electricity supply, logistics, and a lack of state support.
Nevertheless, Stegra recently reached an agreement with LKAB to commence test runs with iron ore pellets by the end of 2026. The plan still involves sourcing some iron ore from suppliers in Canada and Brazil.
Henriksson emphasises the critical importance of a diversified supplier base.
– You really don't want to exceed 60 percent from a single player.
While phase one remains on schedule, concerns persist regarding phase two, when production is expected to escalate from just over two million tonnes of green steel per year to nearly five million.
– We're preparing certain aspects, but it will still take two and a half years. So, if we make a decision at the end of 2027, we could theoretically be operational by 2030.
However, this expanded production will require significantly more electricity than their current access allows. A decision to invest in phase two is contingent upon gaining clarity regarding energy supply.
– That's what's holding us back from moving forward.