Development Bank of Japan Inc. ("DBJ") has acquired a stake in Stegra (formerly H2 Green Steel). Headquartered in Stockholm, Sweden, Stegra is led by CEO Henrik Henriksson. DBJ acquired a minority shareholding position in Stegra by acquiring a minority position in a joint venture with the Clean H2 Infra Fund S.L.P., a hydrogen infrastructure fund managed by Hy24 SAS.
Stegra was founded in 2020. The company's purpose is to accelerating the decarbonization of hard-to-abate industries, starting with steel, in response to the growing importance of reducing CO2 emissions in the industrial sector. The company is building the world's first commercial-scale green steel plant in Boden, northern Sweden, with the aim of starting operations in 2026. The plant will manage the integrated processes--from producing green hydrogen from Sweden's abundant renewable electricity sources to producing green iron using green hydrogen as a reducing agent. The process reduces CO2 emissions by up to 95% compared to conventional blast furnace-based iron and steel production processes.
Hydrogen is positioned as a core energy source to achieve carbon neutrality. Under Japan's Basic Hydrogen Strategy, while satisfying S+3E*1 criteria, hydrogen is anticipated to play a pivotal role in the realization of the country's Green Transformation*2 initiatives. DBJ will support the expansion of the base of hydrogen-related projects and the advanced initiatives needed to achieve carbon neutrality.
DBJ will support our clients' efforts to achieve carbon neutrality in Japan in accordance with our corporate philosophy, "Design the future with financial expertise: Continue to expand financial frontiers; Provide the best solutions for customers and society; Pursue sustainable development for Japan and the world."
*1S+3Estands for safety, energy security, economic efficiency, and environment, which are fundamental elements of Japan's energy policy objectives.
*2Green Transformation means transition from the coal, oil and other fossil-fuel-centered industrial and social structure to a clean-energy-centered one (i.e., with no CO2 emissions), as defined by the Ministry of Economy, Trade and Industry.
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