As its artificial intelligence expansion pushes up its carbon footprint, Google is helping finance a steel venture in Sweden aimed at cutting pollution from one of industry's heaviest contributors.
Here's what to know
Under the arrangement, Google will help Stegra, a Swedish steelmaker, advance its Boden plant, where green hydrogen will replace coal in the production process for what the company describes as near-zero-emission steel, Canary Media reported. The aim is to sidestep the pollution usually associated with conventional iron and steelmaking.
Instead of taking delivery of metal, Google is buying environmental attribute certificates connected to Stegra's production. That lets Google claim the pollution reductions from as much as 100,310 tons (91,000 metric tons) of steel for its climate goals while also offsetting some of Stegra's higher clean-manufacturing costs.
A big reason steel carries such a heavy climate toll is that iron ore is usually processed in coal-fired furnaces. Steelmaking generates about 9% of the world's annual human-caused carbon dioxide pollution.
Google's own climate numbers are also moving in the wrong direction. The company said its annual pollution levels rose 18% from 2024 to 2025, a jump partly tied to heavier use of steel, concrete, computer hardware, and other data center inputs, Canary Media noted.
More background
Stegra, formerly known as H2 Green Steel, says its process can cut steelmaking pollution by up to 95% compared with conventional methods. The facility will use northern Sweden's wind and hydropower resources to produce hydrogen, which it will use to convert iron ore into iron before electric arc furnaces turn that iron into steel.
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The company's flagship plant is expected to produce 2.76 million tons (2.5 million metric tons) of steel in its first phase and eventually ramp up to 5.51 million tons (5 million metric tons). However, the exact start date remains unclear, as Stegra has faced financial challenges and said its timeline is still under review.
Stegra has a separate arrangement with Microsoft covering both certificates and actual steel destined for Microsoft's equipment suppliers that serve European data centers.
If more large companies help create early demand for cleaner steel, the material could become more widely available and affordable for builders, automakers, appliance makers, and infrastructure projects.
What's being done?
Major companies can make a big difference by stepping in before these plants are fully established. Because green steel facilities are costly to develop, project builders often need well-funded customers to show investors there will be a market for cleaner metal.
That is what Google is offering here, despite not taking physical shipments. Canary Media reported that Stegra will still sell the steel in Europe as a standard product, while Google's support helps the company navigate its early operating period and scale output.
Consumers also have a role to play, even if indirectly. Supporting brands that invest in cleaner supply chains can help reward companies making these kinds of decisions.
In an email cited by Canary Media, a Google spokesperson said: "By supporting early-stage technologies like Stegra's green steel, we are helping to create a market for materials that are essential to reducing emissions."
Where can I learn more?
These stories look at Google's offshore wind deal, climate-pledge oversight, and geothermal investment.
• In the Netherlands, Google signed its largest-ever power agreement with offshore wind projects.
• A software platform is tracking corporate climate pledges to spot greenwashing and missed targets.
• Companies are backing an unexpected type of energy through new geothermal leases on public land.
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