- Stegra is building a green hydrogen-powered steel plant in Boden, Sweden, and plans to start production by 2026.
- The project replaces coal with renewable hydrogen in the steelmaking process.
A green hydrogen-powered steel mill is taking shape in Boden, northern Sweden, and remains on track to start production by 2026. The project advanced significantly after 740 megawatts (MW) of electrolysers were delivered to the site. Stegra, the company behind the initiative, aims to manufacture green steel by replacing coal with renewable hydrogen in the production process.
Steel plays a vital role in modern life due to its strength, versatility, and affordability. It supports a wide range of sectors, from consumer goods to construction, transport, and manufacturing. The built environment around us depends heavily on it. However, this widespread reliance on steel carries a steep environmental cost.
Producing one tonne of steel typically emits 1.9 tonnes of carbon dioxide. As global demand for steel rises, the sector accounts for nearly nine per cent of greenhouse gas emissions. These emissions contribute to climate change and intensify extreme weather events. As countries commit to achieving net-zero emissions, industries like steel production require urgent transformation, something Stegra intends to deliver.
Founded in 2020, Stegra focuses on decarbonising hard-to-abate industries critical to economic growth but traditionally reliant on fossil fuels. The company is beginning its transition with green steel production in Boden.
Traditional steelmaking relies on coal or fossil gas during the direct reduction process, where iron ore is reduced in its solid state below its melting point to create spongy iron. That iron is then converted into steel. Stegra plans to disrupt this step by using green hydrogen, significantly lowering emissions by removing the need for blast furnaces.
Furthermore, the company has ordered 740 MW of electrolysers from German industrial giant Thyssenkrupp to support this shift. The order includes 37 alkaline electrolysis modules, each rated at 20 MW. Each module measures 40 metres in length and five metres in width. Thyssenkrupp assembled the massive skids at its Spanish facility and dispatched them to Boden.
The modules will be installed on a 70-hectare plot between the power station and the reduction tower at the site. A team of 3,000 staff, contractors, and consultants will manage the installation of the hydrogen generators and water-gas separation units. The plant will feed the generated hydrogen into its direct-reduction units.
Meanwhile, Stegra has invested $7.4 billion in the Boden facility. “This is a big milestone for us and marks an important step for what will be one of the largest electrolysis plants globally,” the company stated on social media.
The installation of the electrolysers keeps the company on schedule to begin producing green hydrogen-powered steel by 2026.