Google and Stegra have entered into an agreement to purchase certificates of environmental performance related to steel production at the company's facility in Boden, Sweden.
At the first stage, the contract will cover the production of up to 91 thousand tons of steel per year. In the future, the parties expect to increase volumes during the term of the agreement.
Google said it will use these certificates as part of a strategy to reduce steel-related emissions applied in its own supply chain, including the construction of data centers.
Stegra believes that the partnership will help provide additional revenue during the plant's launch and create financial support as production gradually increases.
The agreement is based on a model in which environmental attributes are sold separately from the physical product. This means that the steel itself can be delivered to one customer, and the low emissions associated with its production can be delivered to another in the form of certificates.
Stegra intends to apply such a scheme, in particular, for non-standard products at the stage of the company's commissioning. The company notes that in new steel mills, the proportion of such products in the initial stages is usually higher.
At the same time, the metal will be produced using the same technology as the rest of the company's products, using environmentally friendly hydrogen and renewable electricity.
Stegra emphasizes that the model does not lose the environmental value of production and gives companies the opportunity to reduce their carbon footprint, even if low-carbon steel is still available in limited quantities and not in all markets.
