Stegra Partners with Uniper for Long-Term Renewable Energy Supply to Power Green Steel Production

Stegra Partners with Uniper for Long-Term Renewable Energy Supply to Power Green Steel Production

(IN BRIEF) Stegra has partnered with Uniper in a six-year power purchase agreement to supply 6 TWh of electricity to its green steel production plant in Boden, Sweden, from 2027 to 2032. The electricity will power a 700MW electrolysis plant generating green hydrogen, which will be used to produce green sponge iron and 2.5 million tonnes of green steel annually starting in 2026. This collaboration is a key step in decarbonizing industrial processes, with both companies emphasizing their commitment to sustainability and reducing industrial emissions in Europe.

(PRESS RELEASE) DÜSSELDORF, 27-Nov-2024 — /EuropaWire/ — Stegra and Uniper have signed a six-year power purchase agreement (PPA) to supply 6 TWh of electricity to Stegra’s plant in Boden, Northern Sweden. This agreement, covering the period from 2027 to 2032, ensures a reliable energy source to support Stegra’s large-scale production of green hydrogen, green iron, and green steel.

Set to begin operations in 2026, Stegra’s Boden facility will produce 2.5 million tonnes of green steel annually. To achieve this, the plant requires significant energy volumes to power its 700MW electrolysis plant, which generates green hydrogen. This hydrogen will be used to reduce iron ore into green sponge iron, a key component in the production of green steel. The collaboration with Uniper secures a critical portion of the energy needed to sustain these operations.

A Partnership for Decarbonization

Uniper’s Country Chairman for Sweden, Johan Svenningsson, emphasized the importance of supporting industrial transformation: “We are proud to contribute to the energy system transition by being a reliable and innovative partner to industrial off-takers.”

Arne Österlind, Head of Energy Portfolio at Stegra, highlighted the strategic significance of the agreement: “This partnership with Uniper provides us with long-term electricity access, which is essential for our Boden plant. This collaboration aligns with our mission to scale up green steel production and accelerate the reduction of industrial emissions across Europe.”

Driving Sustainability in Industry

Stegra’s commitment to green steel production marks a significant step in the decarbonization of heavy industry. By securing renewable electricity through partnerships like this, the company is reinforcing its role in shaping a sustainable future for industrial processes in Europe.

The collaboration with Uniper ensures not only a stable energy supply but also a shared commitment to innovation and environmental responsibility, paving the way for a greener steel industry.

About Stegra 
Stegra is an industrial impact scale-up in the process of building its first plant for large-scale production of green hydrogen, green iron and green steel. The company was founded in 2020 as H2 Green Steel and changed name to Stegra in 2024 to reflect its purpose to decarbonize hard-to-abate industry, starting with steel. Stegra’s flagship plant is being built in Boden, northern Sweden, and its headquarters are in Stockholm. www.stegra.com 

About Uniper

Düsseldorf-based Uniper is a European energy company with global reach and activities in more than 40 countries. With approximately 7,400 employees, the company makes an important contribution to security of supply in Europe, particularly in its core markets of Germany, the UK, Sweden and the Netherlands.

Uniper’s operations encompass power generation in Europe, global energy trading, and a broad gas portfolio. Uniper procures gas—including liquefied natural gas (LNG)—and other energy sources on global markets. The company owns and operates gas storage facilities with a total capacity of more than 7 billion cubic meters.

Uniper intends to be completely carbon-neutral by 2040. Uniper aims for its installed power generating capacity to be more than 80% zero-carbon by the early 2030s. To achieve this, the company is transforming its power plants and facilities and investing in flexible, dispatchable power generating units. Uniper is already one of Europe’s largest operators of hydropower plants and is helping further expand solar and wind power, which are essential for a more sustainable and secure future. The company is progressively expanding its gas portfolio to include green gases like hydrogen and biomethane and aims to convert to these gases over the long term.

Uniper is a reliable partner for communities, municipal utilities, and industrial enterprises for planning and implementing innovative, lower-carbon solutions on their decarbonization journey. Uniper is a hydrogen pioneer, is active worldwide along the entire hydrogen value chain, and is conducting projects to make hydrogen a mainstay of the energy supply.

This press release may contain forward-looking statements based on current assumptions and forecasts made by Uniper SE Management and other information currently available to Uniper. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Uniper SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to modify them to conform with future events or developments.

Media Contacts:

Uniper SE
Désirée Liljevall
Public Relations Manager
Tel: + 46 73 027 25 58
desiree.liljevall@swe.uniper.energy 

Lucas Wintgens
Pressesprecher/ Corporate & Erneuerbare Energien
lucas.wintgens@uniper.energy
+49 1 60-9 56 53 00 4

Stegra 
Karin Hallstan
Head of Public and Media Relations
T +46 79 006 03 99
press@stegra.com

SOURCE: Uniper SE