Uniper Supports Swedish Green Hydrogen Plant with Power Supply Deal
Key Ideas
- Uniper SE signed a 6 TWh electricity supply agreement over six years for an electrolyzer unit in a steel production project by Stegra in northern Sweden.
- The green hydrogen produced will be used to reduce iron ore to green sponge iron, feeding a 270-hectare steel facility in Boden.
- Stegra, aiming for 95% CO2 emissions reduction, secured offtake agreements with major companies like Porsche AG and IKEA's Ingka Group.
- The project, set to start operation in 2026, plans to produce 2.5 million tons of green steel annually, reaching five million tons by 2030.
Uniper SE has entered an agreement with Stegra to provide six terawatt hours (TWh) of electricity over six years for an electrolyzer unit in a green hydrogen plant in northern Sweden. This plant aims to produce green sponge iron for steel production, with Uniper set to start power delivery in 2027. The facility's initial stage targets 2.5 million tons per annum of green steel, with plans to expand to five million tons by 2030. Stegra, previously known as H2 Green Steel, is focused on reducing carbon emissions by 95% by using clean hydrogen instead of coal. The company has secured offtake agreements with prominent entities like Porsche AG and Ingka Group. The project, supported by Uniper and Axpo Nordic, is a significant step towards accelerating industrial emissions reduction in Europe and marks a strategic partnership between the companies.
Topics
Utilities
Energy Transition
Carbon Reduction
Steel Industry
Offtake Agreements
Electricity Supply
Green Steel Production
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