Stegra signs long-term power deal for green steel

Sweden

STOCKHOLM, November 29, 2024 – Swedish green steel producer Stegra has signed a long-term power-purchase agreement with German energy company Uniper for the supply of 6 TWh of electricity to its Boden plant, the companies announced on Thursday.

The contract will have a duration of six years, starting in 2027.

Stegra is developing a green steel plant in Boden, in northern Sweden, that will use green hydrogen instead of coal for fuel and electrify the steelmaking process, significantly reducing carbon dioxide emissions with respect to traditional methods. Its integrated facilities will produce green hydrogen, green iron and green steel at large scale.

The company is targeting an initial production volume of 2.5 million tonnes of green steel per year, with operations scheduled to begin in 2026. As output is gradually increased to 5 million tonnes per year by 2030, large volumes of electricity will be needed to power the 700-MW electrolysis plant that will generate the green hydrogen.

“The agreement with Uniper forms the base for a strategic partnership with a player which can provide us with long-term access to electricity for our plant in Boden, set to produce green hydrogen, green iron and green steel at scale. This electricity delivery is central to our strategy and a key step towards accelerating reductions of industrial emissions in Europe,” said Arne Österlind, Stegra’s head of energy portfolio.

Photo of Boden green steel plant courtesy of Stegra