Stegra has entered into two agreements with Microsoft, one for the supply of green steel, and the other for the purchase of environmental attribute certificates.
The steel supplied to Microsoft by the Swedish manufacturers will deliver up to 95% lower emissions than conventional steelmaking.
Stegra CEO, Henrik Henriksson, said: “Sustainable change calls for unconventional partnerships. We are now teaming up with a market leader in Microsoft, to demonstrate how we can work together to accelerate change in the steel industry.”
The agreements reflect Microsoft’s focus on becoming carbon negative by 2030 and building markets for low-carbon construction materials.
Melanie Kakagawa, chief sustainability officer at Microsoft, added: “The end game is to source physical materials with the lowest possible CO₂ footprint. Achieving this requires greater volumes of low-carbon steel available in more regions,
"But when physical delivery isn't yet feasible, signing agreements for environmental attribute certificates demonstrates that emissions reductions are possible in the value chain through credible market mechanisms. Moreover, through tools like this, we aim to signal demand, enable project financing, and accelerate global production."
Microsoft is not a direct buyer of materials such as steel. It will work with its suppliers to receive the coils from Stegra and process the green steel into components designated for use by Microsoft’s datacentre equipment suppliers.
