Google signs a green steel deal with Stegra to offset its data center emissions
The agreement will help fund the world's first large-scale green steel plant as Google's own emissions climb alongside its AI data center buildout.
Google has signed an agreement with green steel maker Stegra to purchase environmental attribute certificates linked to near-zero-emissions steel from Stegra's plant under construction in Boden, Sweden. The deal is meant to help Google address its operational emissions while supporting Stegra's development of what it calls the world's first large-scale green steel facility, designed to produce 5 million tonnes of steel a year using hydrogen made from renewable electricity instead of fossil fuels to remove oxygen from iron ore.
Under the agreement, Google will purchase certificates tied to up to 91,000 tons of steel from Stegra's first year of production, with plans to increase the volume over time. Stegra, founded in 2020, recently secured 1.4 billion euros in financing to complete construction of the plant. "Google is naturally one such player" capable of moving markets toward decarbonized industrial products at scale, said Stegra chief executive Henrik Henriksson.
The deal comes as Google acknowledges its own path to net-zero emissions by 2030 is becoming harder to hit: the company's indirect, supply-chain emissions rose 25% in 2025, driven largely by the buildout of AI infrastructure and data centers. Adam Elman, Google's director of sustainability for Europe, the Middle East, and Africa, said certificates like this one are "another vital mechanism" for addressing industrial emissions alongside direct procurement of low-carbon materials.
Based on reporting by Mark Segal for ESG Today. Read the original: https://www.esgtoday.com/google-signs-green-steel-eac-purchase-deal-with-stegra-to-address-data-center-emissions/
This article was produced with the assistance of AI tools and reviewed by an editor before publication.
