Uniper signs PPA with Stegra to power Boden green steel plant

Industrial impact scale-up Stegra and energy company Uniper have signed a six-year power purchase agreement for the supply of 6TWh of electricity to Stegra’s Boden green steel plant in Northern Sweden.

The agreement, which will provide electricity from 2027, will aid in powering Stegra’s flagship Boden power plant, which will produce green hydrogen, green iron and green steel, at large scale.

According to Uniper, the 6TWh of electricity will be used to power the 700MW electrolysis plant that will generate green hydrogen, which in turn will reduce iron ore to green sponge iron that will feed the steel production at the Boden plant.

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Stegra claims that by replacing coal with green hydrogen and electrifying the steelmaking process, they can cut CO2 emissions by up to 95% compared to traditional steelmaking.

Stegra aims to produce 2.5 million tonnes of green steel annually from 2026 and 5 million tonnes by 2030.

Arne Österlind, head of Energy Portfolio at Stegra, commented in a statement: “The agreement with Uniper forms the base for a strategic partnership with a player which can provide us with long-term access to electricity for our plant in Boden, set to produce green hydrogen, green iron and green steel at scale. This electricity delivery is central to our strategy and a key step towards accelerating reductions of industrial emissions in Europe.”

Stegra was founded in 2020 as H2 Green Steel and changed name to Stegra in 2024 to align with its purpose to decarbonise hard-to-abate industries.