SSAB Commits $5 Billion to Pioneering Fossil-Free Steel Mill in Sweden

SSAB, a leading global steel company based in Sweden, has announced plans to invest approximately €4.5 billion (USD $4.9 billion) in constructing a new fossil-free steel mill in Luleå, Sweden. This innovative facility is expected to produce 2.5 million tonnes of carbon-free steel annually, significantly reducing Sweden’s CO2 emissions by an estimated 7%.

Steel production is one of the largest sources of CO2 emissions worldwide, contributing 7% to 9% of global direct emissions from fossil fuels. The initiative by SSAB marks a pivotal step towards sustainable industrial practices, aiming to revolutionize steelmaking through the adoption of environmentally friendly technologies.

SSAB President and CEO, Martin Lindqvist, emphasized the transformative potential of the new mill: “The transformation of Luleå is a major step on our journey to fossil-free steel production. We will remove 7% of Sweden’s carbon dioxide emissions, strengthen our competitive position, and safeguard jobs with the most cost-effective and sustainable strip production in Europe.”

The proposed mill will utilize two electric arc furnaces (EAFs) that operate on fossil-free electricity instead of traditional coal-fired blast furnaces. This method involves electric currents to melt and mold metal, significantly reducing the environmental impact. Additionally, the mill will incorporate recycled scrap and fossil-free sponge iron produced at SSAB’s Hybrit demonstration plant, developed in collaboration with Vattenfall and LKAB. This process replaces coking coal with hydrogen and electricity, generating water as a byproduct instead of CO2.

Beyond its environmental benefits, the project is set to enhance SSAB’s production capabilities and product offerings, particularly in the automotive and truck sectors, while also improving financial performance through reduced fixed costs and the elimination of carbon emissions costs. The startup of the new mill is scheduled for the end of 2028, with full operational capacity expected by the following year.