Stegra has entered into two agreements with Microsoft covering both the supply of near-zero emission steel and the purchase of environmental attribute certificates (EACs) linked to production at Stegra’s new facility in Boden, Sweden. The EAC agreement is the first of its kind in the steel industry and is intended to stimulate global demand for green steel.
Microsoft, which invested in Stegra in 2023 through its Climate Innovation Fund, will now source low-emission steel for its datacenter equipment suppliers. The material, produced with up to 95pct lower emissions than conventional steelmaking, will be delivered in coil form and processed into components for use in Microsoft’s expanding datacenter network.
Alongside the physical supply, the companies have signed an agreement for EACs. Under this model, the environmental benefits of green steel are separated from the physical product. The steel itself is sold as conventional non-prime material without a premium, while the green value is sold separately via certificates. Buyers of the physical steel are required not to make sustainability claims, ensuring no double counting of emissions reductions.
Microsoft has previously applied similar models in sectors such as aviation fuels and cement, but this marks the first application in steel. The approach supports Microsoft’s ambition to become carbon negative by 2030 and reflects its focus on reducing scope 3 emissions, which account for the majority of its carbon footprint and are driven in part by datacenter construction.
Stegra plans to launch its first steel production lines in 2026 using recycled scrap, followed by hydrogen-based green iron and steel in 2027, with full-scale operations targeted for 2028.
