Stegra and Uniper enter 6 TWh electricity agreement
Stockholm, 27 November 2024 –Stegra and Uniper have signed a long-term agreement for the supply of 6 TWh of electricity to Stegra’s plant in Northern Sweden.
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’s plant in Boden will produce green hydrogen, green iron and green steel, at large scale. The initial annual volume will be 2.5 million tonnes of green steel and operations will start in 2026.
Significant volumes of electricity are needed 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 Stegra’s plant in Boden. Through this collaboration with Uniper, Stegra has secured another important part of its electricity supply.
“We are proud to support the ongoing transition of the energy system by being a reliable and innovative partner to industrial off-takers”, says Johan Svenningsson, Country Chairman at Uniper.
“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”, says Arne Österlind, Head of Energy Portfolio at Stegra.
For more information, contact: Karin Hallstan, Head of Public and Media Relations, Stegra at press@stegra.com or +46 79 006 03 99
Désirée Liljevall, Public Relations Manager, Uniper at desiree.liljevall@swe.uniper.energy or +46 73 027 25 58
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
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