Google Invests in Green Steel through Emissions Reduction Certificates

A new steel mill in Boden, Sweden is using green hydrogen to refine iron ore into high-grade steel. Unlike traditional steelmaking, which relies on coal-fired blast furnaces, Stegra's facility uses water electrolysis powered by renewable electricity.

The partnership between Stegra and Google is unique because Google will not be purchasing any physical steel from the mill. Instead, it will purchase environmental attribute certificates that allow Google to claim Stegra's verified emissions reductions toward its own climate goals.

This certificate model decouples green funding from physical supply chains and can help overcome the hurdle of financing hydrogen facilities without guaranteed premium buyers. RMI's upcoming accounting framework for low-carbon iron and steel will provide a standardized system for tracking and verifying emissions reductions.