Google and Stegra have entered into a new partnership aimed at supporting the wider adoption of low-emission steel production. Under the agreement, Google will purchase environmental attribute certificates linked to production at Stegra’s Boden facility.
In the first year, the certificates will correspond to up to 91,000 tonnes of steel production, with higher volumes planned throughout the duration of the agreement.
Google will use the certificates as part of its efforts to reduce emissions associated with the steel used in its operations, including the construction of data centres. For Stegra, the agreement is expected to support revenue generation during the facility’s initial operating period and provide financial support as production is gradually ramped up.
The partnership will operate under a “book and claim” model, in which the environmental attributes are traded separately from the physical product. Under this system, the steel itself can be sold to one customer, while the environmental benefits associated with low-emission production can be transferred to another buyer in the form of certificates.
Stegra will apply the model particularly to non-prime steel products produced during the facility’s ramp-up phase. The company notes that newly commissioned steel plants can have a higher share of such products during the initial stages of production.
These steel products will still be produced through the same process as the facility’s other products, using green hydrogen and renewable electricity.
To prevent the environmental benefits from being claimed by more than one party, customers purchasing the physical steel will not be able to make separate “green” or low-emission production-related environmental claims for these products.
Stegra states that the model could help companies reduce emissions associated with steel consumption, particularly at a time when low-emission steel remains available only in limited volumes and in certain markets, making direct access to the physical product difficult for some companies.
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