Stegra and Uniper have entered into a six-year power purchase agreement (PPA) to support Stegra’s large-scale green hydrogen, iron, and steel production facility in Boden, Northern Sweden. Under the agreement, Uniper will supply Stegra with 6 terawatt-hours (TWh) of electricity between 2027 and 2032, a crucial step in ensuring the plant’s operational energy needs are met.
Enabling Green Steel Production at Scale
Stegra’s groundbreaking plant in Boden is set to revolutionize sustainable steel manufacturing. Operations are slated to begin in 2026, with an ambitious target of producing 2.5 million tonnes of green steel annually. This environmentally friendly production process relies on green hydrogen, generated through water electrolysis powered by renewable electricity.
The plant’s 700 MW electrolysis facility will play a pivotal role in transforming iron ore into green sponge iron, a key raw material for green steel production. To achieve this, Stegra requires a substantial and reliable electricity supply, making the partnership with Uniper a vital component of its energy strategy.
Strategic Collaboration to Drive Industrial Decarbonization
The agreement underscores Uniper’s role as a reliable and innovative energy partner committed to supporting the green energy transition.
Johan Svenningsson, Country Chairman at Uniper Sweden, emphasized the importance of this collaboration, stating:
“We are proud to support the ongoing transition of the energy system by being a reliable and innovative partner to industrial off-takers.”
From Stegra’s perspective, the deal not only secures a critical element of its power supply but also lays the foundation for a broader strategic partnership.
Arne Österlind, Head of Energy Portfolio at Stegra, highlighted the agreement’s significance, noting:
“The agreement with Uniper forms the base for a strategic partnership with a player that can provide us with long-term access to electricity for our plant in Boden. This delivery is central to our strategy and a key step towards accelerating reductions of industrial emissions in Europe.”
Meeting Energy Demands for a Sustainable Future
The scale of Stegra’s operations in Boden requires a consistent and sustainable energy source. By securing 6 TWh of electricity over six years, the company addresses a critical challenge in decarbonizing heavy industry. The energy supplied by Uniper will enable Stegra to power its electrolysis plant, ensuring the production of green hydrogen essential for its steelmaking process.
Green hydrogen serves as a cleaner alternative to fossil fuels in the iron reduction process, significantly reducing emissions associated with traditional steel production. This shift supports broader European efforts to curb industrial emissions and advance climate goals.
Supporting Europe’s Green Transition
Stegra’s initiative is part of a larger movement to integrate green hydrogen into industrial applications across Europe. By scaling up production of green steel, Stegra not only reduces carbon emissions but also positions itself as a leader in sustainable manufacturing.
The partnership with Uniper reflects the growing importance of aligning industrial operations with renewable energy providers to meet energy-intensive production needs. It also highlights the role of long-term PPAs in enabling such collaborations, offering stability and predictability in energy supply for transformative industrial projects.
Paving the Way for Decarbonized Industries
The collaboration between Stegra and Uniper demonstrates how partnerships between renewable energy suppliers and industrial producers can drive decarbonization at scale. This project is expected to have a significant impact not only on the steel industry but also on the broader energy and industrial landscape in Europe.
By harnessing renewable electricity for green hydrogen and steel production, Stegra’s Boden facility sets a benchmark for sustainable industrial practices. Meanwhile, Uniper reinforces its position as a key enabler of the green transition, showcasing the importance of innovative energy solutions in achieving climate targets.
A Future Built on Collaboration
The Stegra-Uniper agreement exemplifies the power of strategic alliances in tackling global environmental challenges. By ensuring access to clean energy, the partnership contributes to reducing industrial emissions, fostering economic growth, and supporting Europe’s transition to a low-carbon future.
With operations scheduled to commence in 2026, this initiative represents a critical step toward reshaping the steel industry and paving the way for sustainable industrial practices worldwide.
