Stegra and Uniper have entered into a long term power purchase agreement (PPA). Under the agreement, Uniper will supply 6 TWh of electricity to Stegra’s Northern Sweden facility annually from 2027 to 2032. Stegra’s Boden plant will produce green hydrogen, green iron, and green steel at scale, with an initial annual output of 2.5 million tonnes of green steel.
Furthermore, the plant is set to begin operations in 2026. The plant will require electricity to operate its 700 MW electrolysis plant, which will produce green hydrogen. This hydrogen will be used to reduce iron ore into green sponge iron, which will then be used as the raw material for green steel production.
In May 2024, CIP, through its Energy Transition Fund, and Uniper inked a MoU to collaborate on green hydrogen. The partnership between CIP and Uniper will drive collaboration on the production, transport, and marketing of green hydrogen from the HØST PtX Esbjerg project, located on the Danish West Coast, to Germany.
REGlobal’s Views: Uniper has a strategy to increase carbon-free power production to 80 per cent of its installed power plant capacity by 2030. Meanwhile, the company is also focusing on green hydrogen and green ammonia development not just in Europe but also in the US. The company has agreements in place with organisations like CIP, Orsted and First Ammonia for development of these projects.
