A professor at Luleå University of Technology warns that Stegra, facing significant financial difficulties and recent executive departures, is likely to collapse soon.
A report from SVT Norrbotten highlights serious financial troubles at Stegra, which currently has unpaid invoices totalling hundreds of millions. Otto Gernandt, the company's chief financial officer, resigned shortly after the report, raising concerns about the project's stability. Associate Professor Ossi Pesämaa from Luleå University of Technology believes that the departure of key personnel from the project signals impending doom as the company struggles under a heavy debt burden, reminiscent of issues faced by Northvolt.
Pesämaa elaborates that the plant in Boden is only 50 to 60 percent completed and points out that Stegra initiated a new funding round last fall aiming to raise 10 billion Swedish kronor. However, he argues that a collapse could be avoided only if the company secures a significantly larger amount of capital, as estimates suggest that 70 billion kronor has already been invested. The financial strain on Stegra and the lack of a solid financial strategy could jeopardize the viability of the project, calling into question its future.
As these developments unfold, the implications for the broader green steel market, where Stegra aims to play a crucial role, become increasingly significant. If Stegra were to fail, it could not only impact investors but also set back advancements in greener technologies, which are critical for achieving climate goals. Pesämaa's comments underscore the urgency and complexity of financial structures within new technologies and projects, indicating a potentially turbulent period ahead for both Stegra and the industry it seeks to innovate.
