Google is collaborating with Stegra to support the operation of a large-scale green hydrogen-based steel plant in the Swedish city of Boden, in a project the two companies describe as the first large-scale plant to produce near-zero-emission steel. The plant replaces coal with renewable energy and green hydrogen, with Stegra estimating that this transition could reduce production emissions by up to 95% compared with steelmaking using conventional blast furnaces.
Steel is one of the industrial components whose emissions are difficult to reduce, because conventional production relies on coal to process iron ore. According to the description provided in the announcement, Stegra’s plant will use renewable electricity to produce green hydrogen, which will then react with iron ore to produce iron. This pathway aims to meet the International Energy Agency’s (IEA) definition of near-zero-emission steel production.
How Will Google Use the Agreement?
Under the agreement, Google will receive environmental attribute certificates (EACs) linked to part of the steel produced by the plant, covering up to 91,000 metric tons during the first year of production. These certificates are used to demonstrate demand for materials produced through more sustainable methods, help address emissions from construction activities, and support the scaling and financing of emerging industrial technologies.
The agreement does not mean that Google will operate the plant. Rather, its announced role is to purchase these certificates and support demand for low-emission steel. The company believes that using this type of material could reduce embodied carbon emissions in data center infrastructure by up to 40%.
What Changes in Practice?
The partnership connects decarbonization in the steel industry with data center construction needs, as these facilities rely on large quantities of steel and concrete. Instead of treating construction materials as separate from its sustainability strategy, Google is attempting to use demand from its projects to encourage the availability of low-carbon materials in the market.
Google says that during 2025 it successfully incorporated low-carbon concrete or low-carbon steel, or both, into more than 20 construction projects. It also pointed to its collaboration with alliances such as the Sustainable Steel Buyers Platform, with the aim of increasing the availability of green construction materials and gradually introducing them into its operations.
Limitations and Open Questions
The publicly announced information focuses on the partnership, the certificates, and the expected impact, and does not specify the date when the plant will actually begin production or the timeline for delivering the contracted quantity. The 95% reduction is also an estimate by Stegra compared with conventional production, while the reduction of up to 40% in data center emissions is based on Google’s estimate of infrastructure emissions, rather than a standardized measurement across all of its projects.
certi.news analysis: The importance of the agreement lies not merely in Google’s purchase of a construction material, but in using the procurement power of a major technology company as a mechanism to support an industrial technology during its expansion phase. However, the practical impact will remain tied to Stegra’s ability to operate the plant and produce the announced quantities, as well as to the extent to which environmental attribute certificates are adopted as a reliable tool for measuring emissions reductions.