Stegra and Uniper have signed a long-term agreement for the supply of 6 TWh of electricity to Stegra’s plant in Northern Sweden. Uniper is an energy company with global reach and activities in more than 40 countries.
In a long-term power purchase agreement (PPA) with Uniper, Stegra secures a yearly supply of electricity produced over the 6-year period ranging from 2027-2032, covering a total of 6 TWh.
Stegra says that their plant in Boden is to produce green hydrogen, green iron, and green steel at a large scale, expecting to begin its operations in 2026, with an initial volume of 2.5 million tonnes of green steel.
With this collaboration, Stegra has secured an important part of its electricity supply as significant volumes of electricity are needed to power the 700MW electrolysis plant that will generate green hydrogen, reducing iron ore to green sponge iron that will feed the steel production at Stegra’s plant in Boden.
“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,” commented Arne ÖsterlindHead of Energy Portfolio at Stegra
“We are proud to support the ongoing transition of the energy system by being a reliable and innovative partner to industrial off-takers,” said Johan SvenningssonCountry Chairman at Uniper