Swedish steelmaker SSAB said Monday it has secured an additional 430 million euros in green financing, completing the funding package for its planned fossil-free steel mill in Luleå, Sweden.
The new loan, backed by Germany's export credit agency Euler Hermes, brings the total green financing for the 4.5 billion euro project to 2.7 billion euros, according to the company.
The announcement comes after SSAB recently postponed the commissioning of the new plant by one year to the end of 2029, citing delays in reinforcing the local power grid.
“Securing this final piece of the financing marks a key milestone in our transformation journey,” said Leena Craelius, CFO of SSAB.
“With this new green loan, we have now completed the financing package needed to deliver the Luleå transformation.”
The project aims to replace the site's current blast furnace-based system with a new mini-mill using electric arc furnaces.
SSAB has said the transformation will reduce Sweden’s total carbon dioxide emissions by 7%.
The total financing package also includes support from the Swedish National Debt Office, the Italian Export Credit Agency, and the Nordic Investment Bank, the company said.
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