Building facilities worth 53 billion – E24

The move will reduce Sweden's carbon dioxide emissions by seven percent, according to SSAB.

The company states that in a message Tuesday.

The investment amounts to 4.5 billion euros (52.9 billion Norwegian kroner), according to SSAB estimates.

The new steel plant will replace a previous plant where iron ore was converted into steel. The company has long had plans for a new, more sustainable facility, where blast furnaces and coal would be replaced Arc furnaceArc furnaceElectric melting furnace And electricity.

SSAB claims the move will reduce Sweden's carbon dioxide emissions by seven percent.

By investing in a new plant, SSAB does not have to modernize the existing plant in Luleå. The company says this will cost about two billion euros over the next ten years.

It requires huge amounts of energy

The SSAB did not say in its notification how much electricity the new plant in Luleå would need. But it has been known since the past that producing fossil-free iron and steel would require a lot of energy.

SSAB is collaborating with iron producer LKAB and energy producer Vattenfall on fossil fuel-free solutions. SSAB's investment in Luleå provides greater security for LKAB's additional investments, LKAB wrote in an article. message Tuesday.

LKAB expects to use five terawatt-hours of electricity annually at the Hybrit pilot plant, which will develop fossil fuel-free production of sponge iron at Galivar. The electricity mainly goes to producing green hydrogen. This plant also receives billions in subsidies from the Swedish authorities.

According to LKAB, intensifying production at Galivar will enable the generation of 20 terawatt-hours of electricity in 2030, or about 12 percent of electrical energy. Energy production today In Sweden. Energy requirements can increase to all 50 TWh in 2040 and 70 TWh in 2050, LKAB previously reported.

– The investment decision of our Hybrit project partner and largest customer SSAB is a strong signal of our planned transition to fossil-free spongy iron at Gallifari, says CEO Jan Moström from LKAB.

The Swedish government has put forward a plan to be able to meet the enormous need for fossil fuel-free electricity. They expect to almost double Swedish energy production to 300 TWh by 2045, with significant investment in nuclear, wind and solar power.

– An important step

The new fossil-free SSAB plant in Luleå will deliver 2.5 million tons of steel per year and will contain two electric arc furnaces, mining and advanced equipment to be able to produce different types of special products and further improve steel.

The iron to be used in Luleå will be mainly recycled, and fossil-free sponge iron from Hybrit's pilot plant in Gállívar will also be used.

– The Luleå conversion is an important step in our journey to produce fossil fuel-free steel. We want to eliminate seven percent of Sweden's carbon dioxide emissions, strengthen our competitive position and secure jobs in the most cost-effective and sustainable way. StripsStripsA form of steel production– Production in Europe, says SSAB CEO Martin Lindqvist.

SSAB believes the investment will provide significant value. It is estimated that total annual operating profits (EBITDA) will improve by more than five billion Swedish krona annually. The company notes that the new plant will have, among other things, lower fixed costs and higher efficiency, in addition to higher production.

Starting in 2028

According to the plan, the new SSAB plant in Luleå is scheduled to start operating in 2028 and reach full capacity in 2029.

The company previously made the decision to convert its factory in Oxelsund to fossil fuel-free production. After Luleå, a factory is also planned to be built in Raahe (Prahstad) in Finland.

– Together with our partner LKAB, we are committed to eliminating CO2 emissions from our value chain, says Lindqvist.

“At the same time, we are ensuring the industrial competitiveness of the Nordic countries for decades to come, supporting thousands of customers who rely on high-quality steel from our value chain,” he says.