Axpo Nordic and Stegra have signed a power purchase agreement for the supply of electricity to Stegra's integrated green H₂, iron and 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 H₂, 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 H₂, 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," said 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," said Axpo Sverige AB Managing Director Tomas Sjöberg.

Axpo Nordic is a subsidiary of the Axpo Group, a leading international energy company headquartered in Switzerland. Operating in the Nordic and Baltic energy markets, the subsidiary has a particular focus on electricity trading, renewable energy solutions and energy-related services. A pioneer of power purchase agreements in the Nordics, the company secured its first PPA almost 20 years ago. Axpo Nordic currently has 24 TWh of renewable power from wind and solar under management in the region and manages 3.5 GW of renewable power annually.