Stegra and LKAB will begin pilot rail shipments of iron ore pellets in Sweden by late 2026 to test logistics for raw material deliveries to a new steel plant. This is reported by the railway transport news portal Railway Supply.

Stegra and LKAB will begin pilot rail shipments of iron ore pellets in Sweden by late 2026 to test logistics for raw material deliveries to a new steel plant
Photo: LKAB

The new Stegra plant is under construction in Boden, Sweden. It will use direct reduction iron (DRI) technology with hydrogen, eliminating CO₂ emissions from the process.

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The site will feature a 700 MW electrolyzer, a 145-meter reduction line, two electric arc furnaces, and cold rolling and finishing units. The process will generate water vapor as a byproduct.

Strategic Role of Rail Logistics in Sweden

Rail transport will play a critical role in supplying iron ore, ensuring uninterrupted deliveries to the facility. LKAB will be the primary supplier of iron ore pellets.

Rail freight will support integration of clean logistics into the green steel value chain, which is essential for sustainable industrial development in Sweden.

Energy Support for the Project in Sweden

In December 2024, Stegra signed a long-term agreement with German energy company Uniper to supply 6 TWh of electricity annually from 2027 to 2032. This capacity is vital for hydrogen production.

The electricity will power the electrolyzer to generate hydrogen. This setup ensures stable operations and helps reduce the carbon footprint of steel production.

The project illustrates Sweden’s transition toward fossil-free industrial steelmaking. Stegra and LKAB are shaping a sustainable and climate-friendly future for the metallurgical sector.

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