Stegra Secures 6 TWh Electricity Deal with Uniper for Green Steel Production

Swedish green steel manufacturer Stegra has entered a long-term power purchase agreement (PPA) with Uniper, a German low-carbon energy producer, to supply 6 TWh of renewable electricity over six years (2027-2032). The deal supports Stegra's green steel plant in Boden, Sweden, which integrates a giga-scale hydrogen facility to decarbonize its production processes.

Stegra, established in 2020, is constructing a facility designed to produce five million tons of green steel annually by 2030. The plant, operational by 2026, will rely on renewable electricity to power a 700 MW electrolysis unit that produces green hydrogen. This hydrogen will be used to reduce iron ore into sponge iron, which will then be processed into steel, significantly cutting CO2 emissions.

Arne Österlind, Head of Energy Portfolio at Stegra, highlighted the importance of the agreement, stating it provides "long-term access to electricity for our plant in Boden, set to produce green hydrogen, green iron, and green steel at scale. This delivery is central to our strategy and a key step towards accelerating reductions of industrial emissions in Europe."

Uniper, headquartered in Düsseldorf, has committed to carbon neutrality by 2040, aiming for more than 80% of its generating capacity to be zero-carbon by the early 2030s. Johan Svenningsson, Country Chairman at Uniper Sweden, emphasized their role in supporting industrial decarbonization, stating, "We are proud to support the ongoing transition of the energy system by being a reliable and innovative partner to industrial off-takers."