Aquatech secures 25-year deal for water management at Stegra’s green steel plant

Aquatech will provide an “end-to-end solution” for all water management requirements at Stegra’s green hydrogen-based steel plant in Boden, Sweden.

Under a 25-year operations contract, the “water island” solution will ensure a complete water management system for the plant, including ultra-high-purity water for electrolysers, compact strip production mill scale, and water for cooling systems.

Aquatech agreed to a corporate Private to Private Partnership (PtPP) with Stegra and John Laing to design, build, finance, operate and maintain the infrastructure.

Stegra (formerly H2 Green Steel) is expected to begin green steel production in 2026, utilising 690MW of electrolysis capacity and a direct reduced iron (DRI) plant to deliver five million tonnes of steel per year by 2030.

Last month, Stegra secured a €100m ($111.7m) grant from the Swedish Energy Agency to drive the plant’s development. In June (2024), the European Commission also approved €265m ($296m) of funding for the facility.

Read more:Stegra secures €100m Swedish grant for green hydrogen-based steel plant

Henrik Henriksson, CEO of Stegra, explained that the water treatment processes will be very important to the plant. “What we’re doing in Boden is pioneering in every aspect, and it would not be possible without partnerships with players like Aquatech,” he said.

Simone Callioni, Global Leader of Project Development for Energy Transition at Aquatech, added, “Our progressive design, build and operation approach enhances project delivery timelines and cost certainty, ensuring each partner can focus on its core strengths.

“By financing the project with John Laing, we provide the client with the predictable cost of water throughout the lifecycle of operations at no upfront cost, drastically reducing the burden of capital expenditure.”