John Laing invests in the world’s first large-scale green hydrogen steel plant

John Laing Group ("John Laing"), a leading international investor and active manager of core infrastructure assets, today announces that it has entered a corporate Private to Private Partnership (PtPP) with Stegra (formerly known as H2 Green Steel) to provide essential water treatment services to Stegra’s flagship industrial site in Boden, Sweden. This will be achieved through the design, build, financing, operations and maintenance of a new Water Treatment Plant (WTP). The WTP is critical ancillary infrastructure required to operate what will be the world’s first large-scale green steel plant.

The technology solution and service of the WTP equipment is undertaken by Aquatech, a market-leading provider of zero liquid discharge and industrial water treatment services. The WTP will supply demineralised water to the electrolysers used to create green hydrogen and purified water used in system cooling, as well as treating wastewater from the steel mill, returning 99.9% of the process water back to the system. Construction of the WTP started in 2023 and is due to be operational in 2026.

This significant, long-term investment strengthens John Laing’s position in Europe as the first sole sponsor and equity investor in critical ancillary infrastructure services for a large-scale green steel plant. John Laing led the structuring of a Water Treatment Services Agreement under which the WTP will receive availability payments from Stegra. John Laing also secured non-recourse project finance including equity and ECA Green Domestic Guarantee supported senior debt financing.

Founded in 2020, Stegra aims to accelerate the decarbonisation of the steel industry by using green hydrogen, produced by electrolysis which is powered by renewable energy. To date, Stegra has secured approximately €6.5 billion of funding for the world's first large-scale green steel plant. Stegra will produce steel with up to 95% lower CO₂ emissions compared to steel made with traditional coke-fired blast furnaces. The plant will produce two and a half million tonnes of green steel annually in Boden initially, with a ramp-up to five million tonnes by 2030.

John Laing is a leading investor in critical infrastructure across Europe, playing a key role in helping governments develop climate-resilient infrastructure aligned with 1.5°C pathways. The investment in Stegra aligns with John Laing's commitment to achieving net zero for 70% of its assets under management (AUM) by 2030, representing a best-in-class sustainability approach that complements the company's broader sustainability strategy.

Andrew Truscott, CEO, John Laing, commented: “We see huge potential in this sector. This project represents a highly attractive opportunity to invest in the growing hydrogen steel sector, accelerating Stegra’s rapid development and scaling production in preparation to meet the global demand for low carbon steel".

“This kind of technology has never been more in need to meet net zero targets in countries. We are excited to be part of this facility and continue to identify and invest in core infrastructure assets that contribute to the global energy transition.”

Luke Gorton, Head of Europe, John Laing, added: “The water treatment plant is an integral feature to the wider project and offers us a unique opportunity to be involved in the decarbonisation of the energy intensive steel industry. As a global leading developer and operator of new infrastructure projects, we are very well positioned to help further Stegra’s production capacities and enable it to supply the world with innovative, decarbonised steel”.

"Technology, transparency, and flexibility are key to solving today’s water challenges ,” says Devesh Sharma, CEO of Aquatech. “Our partnership with Stegra and John Laing delivers impactful value to the green steel facility and establishes a new model for the future of industrial water."

Henrik Henriksson, CEO of Stegra, says: “The water treatment processes are a very important part of our plant, which is the integrated plant for hydrogen, iron and steelmaking globally. What we are doing in Boden is pioneering in every aspect, and it would not be possible without partnerships with players like Aquatech and specialist greenfield investment partners like John Laing”.

John Laing joins other investors in the broader Stegra project with extensive greenfield experience and builds on John Laing’s specialised expertise in greenfield project finance.

John Laing was advised by Ashurst LLP, Vinge, (legal), Arup (technical), EY (tax and accounting), Mazars (model audit).

Societe Generale acted as Sole Underwriter, and Structuring Bank and as Mandated Lead Arranger. UniCredit Bank Austria AG acted as Mandated Lead Arranger, Nordea Bank Abp, filial i Sverige as Lead Arranger and ING Bank N.V. as Arranger.