Powering green steel: Fortum and Stegra Co-operation

Towards cleaner steel production

The steel industry accounts for approximately 7–9% of global carbon dioxide emissions. Stegra is addressing this challenge by building a green steel production facility in the Boden area of Sweden. In addition, facilities for green hydrogen and low-emission iron production will also be built in the region.

At the heart of steel production is hydrogen produced with renewable electricity, enabling up to 95% lower emissions compared to traditional steelmaking. In this energy-intensive process, energy availability and cost predictability are crucial.

The long-term power purchase agreement (PPA) between Stegra and Fortum brings:

• stability in energy costs
• protection against market fluctuations
• the ability to plan cost structures over the long term

Energy security and scalability for Stegra’s business

Fortum has played a key role in launching the production facility projects in Boden by providing Stegra with a competitive and predictable energy solution. This enables the project to proceed on schedule and allows for efficient scaling from the planning stage onward.

Thanks to Fortum’s support, Stegra has been able to manage costs in this power-intensive process.

The collaboration supports Stegra’s operational activities, financial planning, and technological development.

"The stable and predictable energy solution provided by Fortum has been a crucial factor in the launch and scaling of Stegra’s project – together, we are making green steel an industrial reality."