Axpo Nordic and Stegra have signed a power purchase agreement for the supply of electricity to Stegra’s integrated green hydrogen, green iron and green steel production plant in Boden, northern Sweden.
Under the agreement, Axpo Nordic will supply 2.25 TWh of electricity over three years, starting in 2027, to Stegra’s facility in Boden, which is currently under construction. Both parties see this agreement as the beginning of a longer business relationship and an important element of the electricity supply to Stegra’s plant, which will produce green hydrogen, green iron and green steel at large scale.
“Axpo is a great example of an innovative player on the electricity market and a good partner for us at Stegra in securing fossil-free electricity for our large-scale production of hydrogen, iron and steel in Boden. The delivery of this power volume is another important building block in our energy portfolio and furthers our purpose to decarbonize hard-to-abate industries”, says Arne Österlind, Head of Energy Portfolio at Stegra.
“Our partnership with Stegra further demonstrates Axpo’s commitment to facilitating the transition to a low-carbon economy. It is especially rewarding for us to work with a company whose business case has the potential to revolutionize the steel industry and reduce its carbon footprint. We hope to continue supporting Stegra, both in Sweden and other countries where it plans to expand”, says Tomas Sjöberg, Managing Director at Axpo Sverige AB.
Axpo Nordic is a subsidiary of the Axpo Group, a leading international energy company headquartered in Switzerland.