Stegra, a Swedish low-carbon steel developer, has finalized two new agreements with Microsoft, advancing the use of hydrogen-based, near-zero emission steel. The partnership succeeds Microsoft’s 2023 investment in Stegra through its Climate Innovation Fund.

The first agreement covers the physical supply of steel from Stegra’s Boden plant in Sweden. This steel, which has up to 95% lower emissions than conventional steel, will be used by Microsoft’s datacenter equipment suppliers to reduce the company’s scope 3 or indirect carbon footprint.

The second agreement is for environmental attribute certificates (EACs), a model new to the steel industry. This allows the green value of the steel to be sold separately. Microsoft can claim the corresponding emissions reduction, helping signal market demand and accelerate global production of green steel, even when physical delivery isn't yet possible.