Construction Start for Fossil-Free Steel Plant in Northern Sweden: “Historic for Swedish Industry”
SSAB's CEO Johnny Sjöström and Sweden's Minister of Energy, Business and Industry, and Deputy Prime Minister Ebba Busch, break ground on a new steel mill in Luleå. (Photo: SSAB).
SSAB has started construction of the company's new steel plant in Luleå, Northern Sweden. The steel plant is to produce fossil-free steel and will contribute to lowering Sweden's total CO2 emissions with a whopping 7 percent.
This week, construction began on SSAB's new steel mill in Luleå in Northern Sweden.
The Nordic and US-based steel company SSAB is investing billions in transitioning to fossil-free steel production at its existing operations in the northern Swedish city, which is considered Sweden's largest source of emissions.
Reducing Sweden's emissions by seven percent
SSAB's new steel mill is planned to replace the current blast furnace-based production system in favor of an electric steel mill with rolling mills and electric arc furnaces.
"We are building the world's most electrified steel mill that combines cutting-edge technology in a unique way. It is an investment in both competitiveness and the climate. With the new technology, we get lower costs, shorter lead times and a better ability to handle variations in demand," says CEO Johnny Sjöström of SSAB.
"When we close the current production, we will largely eliminate our carbon dioxide emissions in Luleå," he adds.
The company writes that the planned conversion is expected to reduce Sweden's total CO2 emissions by seven percent.
According to the company, the investment in Luleå amounts to EUR 4.5 billion and also includes a cold rolling mill, advanced galvanization and continuous annealing.
The start of operations is planned for the end of 2029.
"Today we are writing history for Swedish industry. This investment consolidates Sweden's position as a leading industrial nation and shows that we are meeting climate challenges with ground-breaking innovation and strong industrial leadership," says Sweden's Minister of Energy, Business and Industry Ebba Busch in a press release.
As HNN has previously reported, SSAB, together with the mining company LKAB and the energy company Vattenfall, is currently developing the Hybrit project, based on fossil-free production throughout the value chain from iron ore to steel. According to SSAB, the new factory will be supplied with a mixture of fossil-free sponge iron from the upcoming Hybrit plant in Gällivare and recycled scrap metal.
Northern Sweden's iron and steel industry
- Ninety percent of the EU's iron ore production comes from Norrbotten in Northern Sweden.
- The county's iron and steel industry is crucial for the employment and the economy of Norrbotten and Sweden.
- The steel industry is also the industry that emits the most carbon dioxide.
Source: The Swedish Agency for Economic and Regional Growth.
