Stegra has entered into two landmark agreements with Microsoft, aimed at advancing the adoption of near-zero emission steel. The first covers the supply of low-carbon steel for Microsoft’s datacenter projects, while the second introduces environmental attribute certificates (EACs), a first-of-its-kind mechanism in the steel industry designed to drive global demand for green steel.
Supply of Near-Zero Emission Steel
Stegra will deliver steel with up to 95% lower emissions than conventional production from its flagship plant under construction in Boden, Sweden. This steel will be supplied to Microsoft’s datacenter equipment suppliers, helping the tech giant reduce embodied carbon in its expanding datacenter footprint.
Henrik Henriksson, CEO of Stegra, emphasized the importance of collaboration: “Sustainable change calls for unconventional partnerships…to accelerate change in the steel industry.” Jennifer Weitzel, Microsoft’s Corporate VP of Engineering, Construction and Procurement, added that integrating low-emission steel is critical for decarbonizing infrastructure while maintaining hyperscale performance standards.
Environmental Attribute Certificates (EACs)
In addition to physical steel, Microsoft and Stegra signed an agreement for EACs, decoupling the green value from the physical product. While the steel itself is sold as conventional, the EACs allow Microsoft to claim the emissions reductions corresponding to the nearly zero-emission steel.
Melanie Nakagawa, Chief Sustainability Officer at Microsoft, noted: “When physical delivery isn’t yet feasible, EACs demonstrate that emissions reductions are possible in the value chain, signal demand, enable project financing, and accelerate global production.”
Driving Sustainable Steel Production
This innovative approach ensures no double-counting of emission reductions while promoting broader adoption of green steel. By separating the green value from physical steel, the partnership encourages larger volumes and expanded geographic availability of near-zero emission steel.
Henriksson highlighted the industry impact: “It’s impressive that Microsoft has chosen to team up with Stegra and put something completely new on the steel market, incentivizing bigger volumes and more locations for steel production with close to zero emissions.”
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