Stegra and Uniper have entered into a long-term strategic power purchase agreement (PPA) to secure the electricity supply of 6 TWh for Stegra’s green steel production plant in Boden, northern Sweden. This agreement, which will run from 2027 to 2032 , provides Stegra with the electricity needed to power its ambitious plant, which will be dedicated to the production of green hydrogen, green iron and green steel on a large scale.
A key step towards industrial decarbonisation
The agreement between the two companies is in line with efforts to decarbonise the most difficult-to-abate industries, especially steel production. Stegra’s plant will be instrumental in this process, using green hydrogen to replace coal in steel production.
The 700 MW electrolysis plant will generate the hydrogen needed to transform iron ore into green sponge iron , an essential component for zero-emission steelmaking. This process will make a crucial difference in Europe’s energy transition.
The importance of electricity supply
The ability to source stable, renewable energy is crucial for Stegra, as the Boden plant will rely on large volumes of electricity to operate its electrolysis system. Through this agreement with Uniper, Stegra will secure a reliable source of clean energy that will support the production of green steel and other sustainable industrial solutions.
This agreement with Uniper allows us to move towards our goal of decarbonising the steel industry, a key step in reducing industrial emissions in Europe.
Commented Arne Österlind, Head of Portfolio Energy at Stegra.
We are proud to support the ongoing transition of the energy system, being a trusted partner for industrial buyers seeking sustainable energy solutions.
Johan Svenningsson, President of Uniper, highlighted
The alliance between Stegra and Uniper
This PPA, in addition to securing the supply of electricity for the Stegra plant , also lays the foundation for a long-term collaboration that will benefit both Stegra and Uniper. The integration of clean technologies in the steel industry is emerging as one of the main ways to reduce Europe’s carbon footprint and ensure a clean energy future.
As green industrial production takes hold, the alliance between these two companies highlights the importance of strategic energy partnerships in the fight for a cleaner planet.
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Source: Stegra
Photo: Shutterstock
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