SSAB Secures Funding for Green Hydrogen Transformation of Luleå Steel Plant
Key Ideas
  • SSAB has received €128m to transition its Luleå steel plant in Sweden to green hydrogen-based steel production, aiming for 2.5 million tonnes of green steel annually by 2029.
  • The use of hydrogen direct reduced iron (DRI) is expected to cut CO2 emissions by up to 95% compared to traditional steelmaking methods, contributing to the EU's climate neutrality goals.
  • The HYBRIT project involving SSAB, LKAB, and Vattenfall has been developing hydrogen DRI technologies, with positive results indicating superior properties of hydrogen-produced sponge iron.
  • While plans for hydrogen-reduced sponge iron production in Finland were deemed commercially unviable, the focus on electrified steelmaking in Sweden aligns with the EU's green steel value chain objectives.
SSAB has secured €128m in funding to decarbonize its Luleå steel plant in Sweden through green hydrogen technology. The grant, approved by the European Commission, will facilitate the installation of an electric arc furnace for producing direct reduced iron (DRI) using renewable hydrogen, aiming to shift away from coal-based steel production. This initiative is expected to enable the plant to produce 2.5 million tonnes of green steel annually by 2029, significantly reducing carbon dioxide emissions by up to 95% compared to conventional steelmaking processes. The HYBRIT project, a collaboration between SSAB, LKAB, and Vattenfall, has been at the forefront of developing hydrogen DRI technologies, showing promising results with hydrogen-produced sponge iron. While plans for hydrogen-reduced sponge iron production in Finland were found to be commercially unfeasible, the focus has shifted to accelerating electrified steelmaking in Sweden. The move aligns with the EU's climate neutrality target for 2050, promoting the greening of the steel value chain. This shift signifies a significant step towards sustainable steel production in Sweden, emphasizing the importance of hydrogen in the decarbonization efforts within the steel industry.
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