Stegra and LKAB have outlined plans for test deliveries of iron ore pellets by rail, scheduled to begin at the end of 2026. The announcement confirms that the two companies have reached a preliminary agreement and are jointly preparing the test transport phase. The operation will serve Stegra’s production facility in Boden, where iron ore pellets are to be used in a direct reduction process.
Stegra’s steel production facility incorporates a 145-metre-tall direct reduction tower designed to process iron ore pellets with the use of hydrogen. The byproduct of this reduction process is water vapour, replacing carbon dioxide emissions commonly associated with conventional blast furnace steelmaking used across Europe.
The proposed test deliveries are expected to take place once infrastructure works on the rail network are completed. No specific route, rail service operator, or logistics contractor has been confirmed at this stage.
Stegra positions its process as a hydrogen-based method to support steel production with lower emissions. The pellets provided by LKAB will serve as the feedstock for Stegra's green hydrogen applications, including the production of sponge iron.
The companies have not disclosed the volume of the test deliveries or any contractual terms beyond the current planning stage. Financial details and estimated logistics costs were not provided. However, should commercial deliveries follow the test phase, rail freight movements between LKAB and Boden are likely to scale up in accordance with Stegra's production capacity.
The planned test deliveries form part of the long-term alignment of logistics capabilities for industrial hydrogen-based steelmaking in Sweden. The rail infrastructure’s role in transporting raw materials is viewed as central to the operation once full production is underway.
