Stegra and Uniper have entered a long-term power purchase agreement (PPA) for the supply of 6 TWh of electricity to Stegra’s groundbreaking green steel production facility in Boden, Northern Sweden. The agreement spans a six-year period, from 2027 to 2032, ensuring a stable and sustainable electricity supply to support Stegra’s ambitious green hydrogen and steel production goals.
Powering the Future of Green Steel
Stegra’s Boden plant, set to commence operations in 2026, will produce 2.5 million tonnes of green steel annually. The facility relies on a 700 MW electrolysis plant to produce green hydrogen, which is used to reduce iron ore into green sponge iron for steelmaking. This innovative process requires substantial amounts of clean electricity, making the partnership with Uniper a critical component of Stegra’s operations.
Supporting the Energy Transition
Johan Svenningsson, Country Chairman at Uniper, highlighted the company’s role in advancing decarbonization:
“We are proud to support the ongoing transition of the energy system by being a reliable and innovative partner to industrial off-takers.”
Strategic Collaboration for a Sustainable Future
The agreement with Uniper forms the foundation of a strategic partnership to secure long-term electricity supply for Stegra’s operations in Boden.
Stegra’s leadership emphasized the importance of the agreement:
“This electricity delivery is central to our strategy and a key step towards accelerating reductions of industrial emissions in Europe. Partnering with Uniper ensures we have the energy needed to produce green hydrogen, green iron, and green steel at scale.”
Pioneering Green Industrial Solutions
With this agreement, Stegra is poised to become a leader in Europe’s green steel revolution, contributing significantly to industrial decarbonization and setting a benchmark for sustainable production. The partnership with Uniper reflects a shared commitment to advancing clean energy solutions and building a more sustainable industrial future.
