Thyssenkrupp Materials Services and Stegra Establish Key Partnership
Thyssenkrupp Materials Processing Europe has successfully signed a significant agreement with Stegra for the supply of steel sourced from Stegra’s facility in Boden, Sweden. The first anticipated deliveries are set to commence in 2027, and this supply deal will encompass a total tonnage in the upper six-digit range.
Multi-Year Agreement for Non-Prime Steel
This multi-year agreement marks a critical step for thyssenkrupp as it aims to acquire large quantities of non-prime steel to satisfy diverse customer needs across various sectors in Europe. Thyssenkrupp’s extensive customer base and logistics network position it favorably to manage the high volume of steel effectively.
Supporting Sustainable Development in Steel Production
Heather Wijdekop, CEO of the Processing business unit at thyssenkrupp Materials Services, articulated the strategic importance of this partnership with Stegra. She emphasized the company’s capabilities in managing high volumes of steel and its commitment to supporting Stegra in scaling its green hydrogen steel production processes, which aim to decarbonize the steel industry.
Stegra’s Innovative Production Facility
Stegra is in the process of constructing a cutting-edge steel production facility in Boden, where it plans to utilize green hydrogen derived from renewable electricity. Non-prime steel, while not meeting certain high-quality standards required by specific applications, remains a robust material eligible for varied uses. As such, it plays a significant role in the European steel market.
Fostering Long-Term Collaboration
Stephan Flapper, Head of Commercial at Stegra, expressed enthusiasm about partnering with thyssenkrupp for non-prime steel. He sees this as the foundation of a long-term collaboration that could significantly impact the market for steel products produced through green hydrogen avenues.
Environmental Considerations in Steel Production
Despite Stegra’s commitment to hydrogen and renewable electricity in its production process, it’s essential to note that the non-prime steel acquired by thyssenkrupp won’t be categorized as CO?-reduced. This categorization arises because Stegra intends to sell the environmental benefits as Environmental Attribute Certificates (EACs) to its clients in the prime steel segment.
Market Development for Environmental Attribute Certificates
Stegra asserts that the establishment of agreements for non-prime steel is vital for the burgeoning market focused on environmental attribute certificates within the steel industry. To prevent overlap in measuring emission reductions, the purchaser of the physical steel is required to refrain from making any sustainability claims.
Contact Information
For additional inquiries, please reach out to Karin Hallstan, Head of Communications at Stegra, at +46 76 842 81 04.
Frequently Asked Questions
What is the significance of the partnership between thyssenkrupp and Stegra?
This partnership will allow thyssenkrupp to secure a substantial supply of non-prime steel from Stegra, supporting both companies in the evolving steel market.
When are the initial steel deliveries expected to start?
The first deliveries under this agreement are anticipated to commence in 2027, marking the beginning of the collaboration.
What is non-prime steel, and how is it used?
Non-prime steel refers to steel that does not meet certain quality standards for specific applications but is still usable across various industries due to its strength and durability.
How does this partnership contribute to sustainability?
This collaboration supports sustainable steel production through the utilization of green hydrogen and renewable electricity, reflecting a commitment to decarbonization.
What are Environmental Attribute Certificates (EACs)?
EACs represent the environmental benefits attached to steel production using renewable energy sources, allowing companies to trade these benefits in the market.
