Uniper and Stegra have signed a six-year agreement for the delivery of 6 TWh of electricity to Stegra's facility in northern Sweden.
Through a long-term power purchase agreement (PPA) with Uniper, Stegra secures an annual supply of electricity produced during the 2027-2032 period, totaling 6 TWh.
Stegra’s plant in Boden will produce green hydrogen, green iron, and green steel on a large scale. The initial annual volume will be 2.5 million tons of green steel, with operations commencing in 2026.
Significant volumes of electricity are required to power the 700 MW electrolyzer facility, which will generate green hydrogen. This hydrogen will, in turn, reduce iron ore into green iron sponge, which will feed into the steel production process at Stegra's Boden facility. Through this collaboration with Uniper, Stegra has secured an important part of its electricity supply.
“We are proud to support the ongoing transformation of the energy system by being a reliable and innovative partner to the industry,” says Johan Svenningsson, CEO of Uniper Sweden.
“The agreement with Uniper forms the foundation for a strategic partnership with a key player who can provide us with long-term access to electricity for our Boden facility, which will produce green hydrogen, green iron, and green steel at scale. This electricity supply is central to our strategy and a crucial step toward accelerating the reduction of industrial emissions in Europe,” says Arne Österlind, Head of Energy Portfolio at Stegra.