STOCKHOLM, Feb 5 (Reuters) - Swedish green steel startup Stegra said on Monday it had appointed Markus Holm as chief financial officer as it scrambles to raise more cash to finish its hydrogen-based steel plant in northern Sweden.
Across Europe, a number of green steel projects have been delayed or run into difficulties as the technology remains new and investment costs high. Stegra had earlier planned to open its plant this year, but now expects to do so in 2027.
Stegra said in October it was seeking an additional $1.1 billion in financing. In January, it said it expected to conclude its financing discussions in the first quarter.
On Thursday, a company spokesperson said Stegra was still working on it.
"As we have announced earlier, we expect to need Q1 to complete the financing round," the spokesperson said.
Stegra said Holm, most recently CFO and board member at Estonia-based green energy technology startup Elcogen Group, would start March 1.
SETBACKS IN SWEDEN'S GREEN INDUSTRIAL TRANSITION
Stegra is one of several projects underpinning Sweden's ambition to become a leader in Europe's green industrial transition, supported by access to low-cost, carbon-free electricity. But those efforts have faced setbacks, most notably the bankruptcy of battery maker Northvolt last year.
In October, the Financial Times cited people familiar with the company's financing as saying the risk of insolvency had been discussed at a Stegra board meeting.
Stegra at the time said it didn't recognise what it called a "one-sided picture". In November, CEO Henrik Henriksson said Stegra was not in a crisis.
The startup, previously called H2 Green Steel, in October said it was in advanced talks about outsourcing some operations.
Stegra said on Thursday its CFO for the past five years, Otto Gernandt, would become a senior advisor, focusing on the funding initiatives.
($1 = 0.8483 euros)
(Reporting by Anna Ringstrom and Greta Rosén Fondahn, editing by Terje Solsvik and Bernadette Baum)
