Stegra partners with Uniper for major electricity supply agreement

Sweden is witnessing a significant development in the renewable energy sector with the recent partnership between Stegra and Uniper, which involves a long-term power purchase agreement. This agreement was signed on November 27, 2024, and will provide Stegra's Boden plant with a total of 6 terawatt hours (TWh) of electricity over the next six years, from 2027 to 2032. This supply is vital for the operations at the plant, which aims to produce green hydrogen, green iron, and green steel on a large scale. As operations are set to commence in 2026, the plant will initially work towards producing 2.5 million tonnes of green steel annually, making it a key player in the industrial shift towards sustainability. The significance of this partnership lies in its role in supporting the transition towards a greener energy landscape. The 700 megawatt (MW) electrolysis plant at Stegra's facility in Boden will require substantial electricity to generate green hydrogen. This hydrogen will then be used to transform iron ore into green sponge iron, which is essential for their steel production process. The agreement with Uniper ensures that Stegra has reliable access to the electricity needed for these operations, solidifying both companies' commitment to reducing industrial emissions in Europe. Patrik Hermansson, Head of Business Development Nordics at Uniper, expresses pride in supporting the energy system transition, highlighting the reliability and innovation that such partnerships can bring to industrial clients. On the other hand, Arne Österlind, Head of Energy Portfolio at Stegra, emphasizes that this electricity supply is critical for the company’s strategy and its overall plan to accelerate the decrease of industrial emissions within the continent. The collaboration not only represents a strategic partnership but also outlines significant supply chain implications, positioning both companies at the forefront of the green energy transition. This agreement is part of a broader trend within Europe, where industrial sectors are increasingly turning to sustainable practices. Such moves are essential to abide by stricter environmental regulations and to meet the growing demand for eco-friendly products. Companies that engage in these transformations not only bolster their competitive advantage but also contribute to the larger goal of combating climate change, showcasing the blend of economic and environmental interests in modern industrial practices.