Stegra and Uniper Partner for Green Hydrogen Production in Northern Sweden
Key Ideas
- Stegra and Uniper have signed a long-term agreement for the supply of 6 TWh of electricity to Stegra's plant in Northern Sweden, supporting the production of green hydrogen, iron, and steel.
- The partnership includes a 700MW electrolysis plant that will generate green hydrogen to reduce iron ore to green sponge iron for steel production, aiming to accelerate reductions of industrial emissions in Europe.
- Uniper's commitment to providing reliable and innovative electricity supply aligns with Stegra's strategy for sustainable industrial production and contributes to the ongoing energy transition in the region.
- The collaboration between Uniper and Stegra marks a significant step towards large-scale green steel production and emphasizes the importance of strategic partnerships in achieving sustainability goals.
Stegra and Uniper have entered into a significant partnership agreement focused on green hydrogen production in Northern Sweden. The long-term power purchase agreement between the two companies ensures the supply of 6 TWh of electricity to Stegra's plant in Boden over a six-year period spanning from 2027 to 2032. This electricity will support the production of green hydrogen, green iron, and green steel at a large scale. Stegra's plant in Boden is set to start operations in 2026, with an initial annual volume targeting 2.5 million tonnes of green steel.
The partnership includes the establishment of a 700MW electrolysis plant that will be responsible for generating green hydrogen. This hydrogen will play a crucial role in the reduction of iron ore to green sponge iron, which will then be utilized in the steel production process at Stegra's facility in Boden. The agreement with Uniper represents a strategic move for Stegra, securing a reliable source of electricity essential for their industrial operations.
Patrik Hermansson, Head of Business Development Nordics at Uniper, expressed pride in supporting the transition to sustainable energy systems and collaborating with industrial partners like Stegra. Arne Österlind, Head of Energy Portfolio at Stegra, highlighted the strategic importance of the agreement with Uniper in facilitating access to long-term electricity supply for their green production processes.
This partnership signifies a crucial step towards decarbonizing industrial processes in Europe and underscores the significance of innovative collaborations in driving the energy transition. The joint efforts of Stegra and Uniper exemplify a commitment to sustainable industrial practices and align with the broader goals of reducing industrial emissions and advancing green technologies within the region.
Topics
Green Hydrogen
Renewable Energy
Energy Transition
Steel Production
Power Purchase Agreement
Industrial Emissions
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