Tech Article Dec 2024 Iron & Steel Industry

H2 Green Steel is Now Stegra

Durgesh GuptaSenior Vice President – Global Iron Making Technology, Stegra

Stegra was launched in 2021 under the name H2 Green Steel, to reduce emissions in the steel industry on a very ambitious timeline. By showing that it can be done, the company also aimed to inspire the incumbent steel industry to speed up the pace of change. Having secured funding of €6.5 billion and being well on its way to building the world’s first large-scale green steel plant – with start of production in 2026 – the company takes the next steps under the new name: Stegra.

The name Stegra is future proof for the journey ahead, which is based on the three distinct platforms that are being built in Boden:

Green hydrogen: one of the world’s largest electrolyzers
Green iron: where the bulk of the emissions are reduced by replacing coal and coke in traditional steelmaking with green hydrogen – emitting water instead of carbon emissions
Green steel: a fully electrified large-scale production facility for near-zero emissions steel

Stegra is a Swedish word which means 'to elevate'. It captures the team's spirit to rise in the face of challenges and always continue to move onwards and upwards. It's a constant reminder of the company's purpose and honors our Swedish roots and where it all began, in Boden.
Henrik Henriksson, CEO

Over the long term, Stegra will explore the potential for growth, leveraging all three platforms and making use of the competence and experience being developed in the flagship plant in Boden.

Stegra has a solid funnel of potential projects outside of Sweden that are being explored as part of a longer-term outlook. They are characterized by locations where the company’s customers need help with value chain decarbonization and which offer abundant access to renewable electricity and strong grid connections. Locations under consideration include Portugal, Canada and Brazil.

Rendering of Stegra Green Steel Complex in Boden, Sweden

The Boden Green Steel project

Why did Stegra choose Boden for its lighthouse green steel project? Boden is a town 45 miles south of the Arctic Circle in the north of Sweden, in an area with one of Europe’s lowest energy costs. Green electricity makes up close to 100% of the energy mix, and the site will include one of the world’s largest green hydrogen electrolysers, at about 800MW. A direct rail line will connect the Boden site to Luleå port, which can accommodate ships equipped for icebreaking to ensure year-round operations. The plant will employ about 1500 people, making the project a building block for a green society and Sweden’s Norrbotten region a world-leader in near zero emission steel production.

SMS group will provide the EAF based melt shop, casting and hot rolling plant as well as an advanced cold rolling and processing complex for the production of a broad product mix including advanced high strength steel and automotive steel grades.

Stegra is pursuing a 5-step development plan for its light-house project in Boden, Sweden, with the goal of producing 5 million t/y of green steel:

STEP 1: Giga-scale Electrolysis – using renewable electricity to decompose water into hydrogen and produce enough hydrogen to make 5 million tonnes of high-quality steel annually by 2030.

STEP 2: Hydrogen-based Direct Reduction – using green hydrogen instead of coal or natural gas to react with oxygen in iron oxide pellets to produce highly metallized direct reduced iron (DRI) for steelmaking with steam as the residual, thus reducing CO2 emissions by up to 95%.

STEP 3: Electric arc furnace (EAF) Steelmaking – using renewable electricity to heat DRI and steel scrap to create liquid steel, with contained carbon in the slag playing an important role in lowering electricity consumption and enabling the transformation of iron to steel.

STEP 4: Continuous Casting and Rolling – allowing energy consumption to be reduced 70% and replacing natural gas in the traditional process.

STEP 5: Downstream Finishing Lines – cold rolling, annealing, and hot-dip galvanizing for adjusting steel thickness, creating desired mechanical properties, and protecting against corrosion, respectively.

DRI PLANT PROJECT

Plant Key Features

Capacity: 2.1 million t/y
Product Types: HDRI, Merchant HBI
HDRI Feeding: Continuously charged to EAF via a hot
transport conveyor
DRI Furnace: Proven MIDREX® Shaft Furnace design
Gas Composition: 100% H2 capable (DRI carbon optimized
with melt shop), 85% H2 (DRI carbon 1.3%)
Gas Preparation: Fossil-free electrical heating
Renewable Energy: Midrex-Tutco Electric Heaters, PSA
H2 Recovery
CO2 Emissions: 50 Kg/t DRI (carburized DRI case), 90% or
greater emissions reduction

From the outset, the Stegra green steel project has been driven by an aggressive schedule, exemplified by the DRI plant milestones:

A COLLABORATIVE JOURNEY

September 2024 marked a significant milestone in the collaborative efforts between Midrex, Paul Wurth, and Stegra with completion of the final phase of the process design review and safety analysis for the MIDREX H2™ hydrogen direct reduced iron (DRI) plant. This comprehensive initiative, which began over 1.5 years ago following the effectuation of the contract for the first-of-its-kind green steel project in Boden, Sweden, underscores the joint commitment to innovation, safety, and teamwork—core values that are fundamental to our mission of creating a sustainable future for iron and steelmaking.

The final phase of the review took place at Midrex head-quarters in Charlotte, North Carolina, following prior sessions in Stockholm, Sweden and Genoa, Italy, which brought together experts from Stegra and Paul Wurth. This geographical diversity enriched the process, highlighting our commitment to a collaborative and inclusive approach by bringing together a wide range of expertise and experience from across the globe.

This multi-phase review involved input from various engineering disciplines – Process, Mechanical, Electrical, Equipment, Safety, and Operations. Each team contributed unique insights to identify potential risks associated with the design and propose necessary mitigations or design changes, ensuring the safety and efficiency of the DRI plant in keeping with Midrex’s dedication to operational excellence and continuous improvement.

IMPORTANCE OF ENGAGEMENT & LEVERAGING EXPERTISE

Central to this process were the contributions of our Process and Operations teams, who carried out the “heavy lifting” during discussions. Their deep understanding of the intricacies of design and operation was pivotal in driving the review forward. Their hard work and commitment deserve heartfelt appreciation and special recognition.

In addition to technical discussions, our diverse group – representing approximately 10 nationalities – engaged in team-building activities to foster strong relationships and create a cohesive unit poised to tackle the challenges ahead when this core group will be responsible for the commissioning and start-up of the DRI plant.

The synergy created by this collaboration is further amplified by Stegra’s extensive exposure to the operation of various MIDREX Plants. Their contribution brought a wealth of knowledge to the learning process, demonstrating the power of leveraging collective expertise to drive innovation.

LOOKING AHEAD

As we look forward to the commissioning and start-up phase of our project, the commitment to safety and operational excellence will remain at the forefront of our efforts. The insights gained from this process review will ensure that our DRI plant operates at the highest standards.

The completion of the Stegra process design and safety review exemplifies the power of collaboration. Through effective communication, shared expertise, and strong team dynamics, we are not only advancing our projects but also cultivating a culture of safety and innovation that will guide us into the future.