24.03.2021. SSAB, LKAB and Vattenfall are now taking a new, decisive leap forward in their work to make fossil-free steel for the global market. Industrialisation of the technology being developed through Hybrit will start in Gällivare, northern Sweden, where the world’s first production plant for fossil-free sponge iron – from feedstock to steel – is being planned.
“That we are now raising ambitions for a completely fossil-free value chain is unique and a message of strength from SSAB and our partners. We are seeing a clear increase in demand for fossil-free steel and it is right to speed up our groundbreaking cooperation,” says Martin Lindqvist, President and CEO at SSAB.
Industrialisation is intended to start with the first demonstration plant, which will be ready in 2026, for the production of 1.3 million t of fossil-free sponge iron in Gällivare. The demonstration plant will be integrated with iron pellet making and is part of LKAB’s transition plan. The goal is to expand sponge iron production to a full industrial scale of 2.7 million t by 2030 to be able to supply SSAB, among others, with feedstock for fossil-free steel. The choice of Gällivare for establishing of the plant was based on a joint assessment of industrial synergies, where proximity to iron ore, logistics, an electricity supply and energy optimisation were important factors.
“Together, we will lead the transformation of the iron and steel industry, and with Hybrit we will now start our historic transformation to be the future supplier of sponge iron. The whole process starts with top quality iron ore in the mine and our transition plan gives strong economies of scale that pave the way for the competitive production of fossil-free steel by our customers. This is the greatest thing we can do together for the climate. Once we are ready, we will reduce the global emissions of our customers by 35 million t/a, which is equivalent to the triple the effect of parking all passenger cars in Sweden for good,” says Jan Moström, President and CEO at LKAB.
SSAB and LKAB deepen the partnership
At the same time, SSAB and LKAB will deepen their partnership to create the most effective fossil-free steel value chain from mine to steel, to customer. We will support and enable each other’s transformation, with Vattenfall an enabler of the huge need for electricity and hydrogen gas. On the back of an acceleration of Hybrit together with LKAB’s strategy and deeper partnership, SSAB will now explore the prerequisites to convert to fossil-free steel production in Luleå faster than planned. The plan to convert Oxelösund in 2025 remains unchanged, as does our goal to be the first to market, in 2026, with fossil-free steel.
Access to fossil-free electricity decisive
There are many advantages to locating the new sponge iron plant in Gällivare, which is also in close proximity to LKAB’s mining production and processing. Using iron ore pellets that are already warm in the process will save huge amounts of energy. On top of this, 30 % of weight will be eliminated from transport since hydrogen gas will be used to remove the oxygen in the iron ore. Gällivare also offers good access to fossil-free electricity from Vattenfall. “Sweden and Hybrit have a world-leading position in making fossil-free iron- and steelmaking a reality and the initiative will now be further scaled up. That fossil-free electricity and groundbreaking processes will in principle help to eliminate climate-affecting emissions completely from iron- and steelmaking is a flagship example of Vattenfall’s strategy to enable a fossil-free life within a generation. It is now extra important that the permit processes can deliver at the same pace as fossil-free steelmaking,” says Anna Borg, Anna Borg, President and CEO at Vattenfall.