Wedoany.com Report-Nov 28, Swedish green steelmaker Stegra has signed a six-year electricity supply agreement with Uniper for a total of 6TWh to power its inaugural green hydrogen-based steel plant.

The power purchase agreement (PPA) secured a yearly electricity supply between 2027 and 2032 for a total of 6TWh to the Boden plant, which will power the 700MW of on-site electrolysis and initial 2.5 million tonnes of annual steel production.

Expected to start operations in 2026, the plant will use green hydrogen to reduce iron ore into sponge iron, which will then be fed into steel production.

Uniper and Stegra have not specified if the electricity under the PPA will be entirely renewable. H2 View has contacted both companies for confirmation.

The Uniper PPA comes after Stegra signed a three-year 2.25TWh supply deal with Axpo Nordic, bringing Boden’s total 2027 electricity supply to over 8TWh.

“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,” explained Arne Österlind, Stegra’s Head of Energy Portfolio.

“This electricity delivery is central to our strategy and a key step towards accelerating reductions of industrial emissions in Europe.”

According to Stegra, through its green steel process, involving hydrogen-based direct reduction of iron (DRI), it will be able to produce a maximum of five million tonnes of steel with up to 95% less CO2 emissions than traditional processes in Boden.