Sweden is advancing green steel production by shifting from fossil fuels to hydrogen-based processes, led by Stegra and SSAB, with Boden as the central site.

The project starts with input of scrap metal and iron ore from Brazil and Canada (and later LKAB) aiming for an initial capacity of about 2.5 million tons per year, with plans to scale to 5 million tons.

EU policy incentives bolster the business case, including phasing out free ETS allowances, the Carbon Border Adjustment Mechanism, and potential demand for green steel in the automotive sector and other industries.

Financing comes from a mix of private and public sources, including Just Climate, Hy24, the EIB, foundations tied to the Wallenberg family and IKEA, and Swedish state support through Industrial Leap and related programs.

The Boden complex will employ roughly 3,000 people from around 55 nationalities and will house three facilities: green iron, green steel, and Europe’s largest green hydrogen plant with 37 electrolyzers producing over 100,000 tons of green hydrogen annually.

The project aims to produce iron and steel with little to no fossil fuels by integrating a massive hydrogen plant and renewable-powered electric arc furnaces to dramatically cut carbon emissions.

Stegra prioritizes quality and safety, emphasizing a careful build that honors Sweden’s steelmaking heritage while pursuing climate goals.

The broader context highlights industry demand for renewable-powered production, the central role of hydrogen and green electricity, and a potential market shift toward green steel products.

Boden hosts Europe’s first new iron and steel manufacturing complex in more than five decades, spanning about 270 hectares and featuring a major reduction tower for iron production.