Meta backs Stegra's green steel project through certificate deal

Meta has signed a multi-year agreement with Swedish steelmaker Stegra to purchase environmental attribute certificates (EACs) linked to steel from Stegra's green steel plant currently under construction in northern Sweden.

The agreement uses a book-and-claim system that separates the environmental attributes of the steel from the physical product. Meta will purchase the certificates, which will be verified by an accredited third party, allowing the company to account for lower-carbon steel production in its supply chain without taking physical delivery of the material.

Stegra said the agreement will help support demand and financing for early-stage low-emission steel production. The company's planned steelmaking process will use green hydrogen and renewable electricity, with the potential to reduce CO2 emissions by up to 95 pct compared with conventional blast furnace-based steelmaking.

The physical steel underlying the certificates will be sold without its associated environmental attributes, meaning the emissions benefit can only be claimed by the EAC holder. Stegra said it will initially apply the book-and-claim system to non-prime steel produced at its new facility.

The agreement follows a similar deal signed with Google in September. Google's agreement covers EACs linked to up to 91,000 tons of steel during the first year, supporting Stegra's efforts to finance and scale production during its initial years of operation.

Stegra is developing an integrated near-zero emission steel plant in Boden, northern Sweden, based on hydrogen-powered direct reduced iron (DRI) and electric arc furnace (EAF) steelmaking.