Scandinavian steel company SSAB has received the necessary approval from the Land and Environment Court in Umeå, northern Swedish county of Västerbotten, to build and operate a mini-mill in Luleå, county of Norrbotten, which will replace the current steel mill with a blast furnace.
The company said that the permit will allow for a technological shift that will have a positive impact on the environment and climate, and will also allow SSAB to meet high demand for its steel products.
It was further said that preparations for construction will now continue with detailed design and the building permit process. It was added that once the new plant with electric arc furnaces, rolling mills and further processing is at full capacity, SSAB will decommission the current Luleå blast furnace production system.
“This is a big day for SSAB and the transition to steel production free from fossil fuels in Sweden. We can now begin making investments that will reduce our climate impact across the country,” said SSAB President and CEO Johnny Sjostrom.
He added that the transformation of the plant will also create a more flexible and cost-effective production with a wider range of high-quality and special steel products with virtually zero emissions and maintain jobs in Luleå.
SSAB said the investment will lead to an improved cost position, increased efficiency, reduced lead times orders and eliminating CO2 costs. The new plant will run on fossil fuel-free electricity and will be powered by a mixture of fossil-free sponge iron produced using HYBRIT technology and recycled steel scrap.
Unlike traditional steelmaking, which uses coking coal, SSAB's HYBRIT process uses hydrogen generated from renewable electricity to produce sponge iron, which is then processed into steel. According to SSAB, the process produces steam instead of CO2 and largely eliminates CO2 emissions from the steelmaking process.
SSAB said the conversion of the Luleå plant will significantly reduce air and water emissions and improve efficiency use of resources and reduce carbon dioxide emissions by approximately 2.8 million tons per year.
According to SSAB, overall, the transformation of SSAB will reduce total CO2 emissions in Sweden by 10%, of which 7% is in Luleå and 3% in the transformation in Oxelåsund.
Platts, part of S&P Global Commodity Insights, estimates the carbon-inclusive daily price of hot-rolled steel coils in North-West Europe at 615 euros/t ex-works in Ruhr on December 18, which is 22% less than at the beginning 2024
