Stegra and LKAB agree on test deliveries of pellets

Metallurgical startup Stegra (formerly known as H2 Green Steel) and Swedish mining company LKAB have reached an agreement in principle and plan to jointly carry out test deliveries of iron ore pellets at the end of 2026, after the completion of railroad track work. This is stated in a press release from Stegra.

The pellets will be used at Stegra’s plant to produce green hydrogen, sponge iron and steel. As noted, test deliveries are a way to make sure that logistics flows are working.

The green hydrogen rolls will be processed in the company’s 145-meter-long direct reduction unit.

According to Henrik Henriksson, CEO of Stegra, the parties have developed a plan for test deliveries. The company hopes that this is the beginning of a long-term cooperation that will further strengthen Sweden’s security of supply and its progressive position in the green industrial transition.

Stegra is building a large-scale clean steel plant in Boden, Sweden. It will consist of an electrolytic cell, a direct reduction unit, two electric arc furnaces, as well as cold rolling and finishing shops. The plant is expected to be commissioned in 2026.

Last December, Stegra and Germany’s Uniper signed a long-term power purchase agreement (PPA) to supply 6 TWh of electricity to the future plant in Boden. It will be valid for the period 2027-2032. Significant volumes of electricity are needed to power the 700 MW electrolysis plant that will produce green hydrogen.