Stegra and Uniper have signed a long-term power purchase agreement (PPA) securing a yearly supply of 6 TWh of electricity to Stegra’s plant in Northern Sweden, produced over a 6-year period from 2027 to 2032.

Stegra’s plant in Boden will produce green hydrogen, green iron and green steel, at large scale, with operations set to start in 2026. The initial annual volume will be 2.5 million tonnes of green steel.

Significant volumes of electricity will be needed to power the 700 MW 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 bring Uniper onboard as a core partner in Stegra’s energy portfolio. Producing green hydrogen, iron, and steel requires significant electricity. This agreement with Uniper is key to ensure a long-term electricity supply for our Boden plant” – says Carl-Erik Lagercrantz, CEO, Vargas Holding.

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