Google Buys Green Steel Certificates from Stegra

Google has entered an agreement with Stegra to purchase environmental attribute certificates (EACs) linked to Stegra's near-zero emission steel production in Boden, Sweden, covering up to 91,000 tonnes of steel for the first year [1]. This move allows Google to address steel-related emissions from its operations, including data center construction, while supporting the scaling and financing of Stegra's new industrial clean tech operations [1, 2].

Supporting Green Steel Production

The agreement focuses on EACs rather than direct physical steel procurement, a mechanism that decouples environmental attributes from the physical product, known as "book and claim" [1, 4]. This allows Google to count emissions reductions associated with Stegra's steel toward its own sustainability targets, even when direct procurement is challenging due to geographical or value chain separation [1, 4]. Stegra's plant uses renewable electricity to generate green hydrogen, which then reacts with iron ore to produce steel, a process estimated to cut emissions by up to 95% compared to traditional blast furnace manufacturing [2].

Google's Director of Sustainability for Europe, the Middle East, and Africa, Adam Elman, stated that certificates are a vital mechanism for decarbonizing challenging sectors, building on models proven with clean electricity and sustainable aviation fuel [1]. By supporting early-stage technologies like Stegra's green steel, Google aims to help create a market for materials essential to reducing emissions [4]. Google reported an 18% rise in annual emissions from 2024 to 2025, partly due to increased use of steel and concrete for data centers [4]. The company estimates that integrating low-carbon concrete and steel can reduce embodied carbon emissions from data center infrastructure by up to 40% [2]. In 2025, Google integrated low-carbon materials into over 20 construction projects [2].

Market Implications and Precedents

This agreement provides Stegra with increased cash flow during its early years of operation and ramp-up of production [1]. Stegra's CEO, Henrik Henriksson, noted that players like Google are crucial for moving markets toward decarbonized products [1]. The Swedish facility is one of several global projects aiming to reduce emissions from iron and steel production, which currently accounts for approximately 9% of human-caused carbon dioxide emissions annually [4].

This is Google's first such agreement for green steel EACs, but it is the second for Stegra [4]. Last year, Stegra, formerly H2 Green Steel, secured a two-part deal with Microsoft, selling both certificates and physical steel to Microsoft's equipment suppliers for European data centers [4]. Neither Google nor Microsoft have disclosed the financial value of their respective arrangements with Stegra [4].

What to watch

• Stegra's production ramp-up: Monitor the progress of Stegra's plant in Boden, Sweden, as it scales production of near-zero emission steel.
• Expansion of EAC agreements: Observe if Google or other major tech companies pursue similar environmental attribute certificate agreements for other hard-to-decarbonize materials.
• Impact on Google's emissions targets: Track Google's reported embodied carbon emissions in future reports to assess the effectiveness of these certificate purchases in meeting sustainability goals.

The agreement highlights a growing trend among large tech companies to use financial mechanisms like EACs to address their supply chain emissions and support the development of nascent clean industrial technologies, even when direct material procurement is not feasible.