Swedish state-owned mining company to switch to hydrogen for DRI production
Swedish state-owned mining company LKAB plans to develop direct reduction iron (DRI) production with hydrogen to reduce emissions in the steel industry, says message LKAB in Monday.
Particular attention will be paid to the significant increase in renewable energy and hydrogen capacity required to achieve zero emissions within 15 years.
LKAB plans to reduce carbon dioxide emissions from iron ore and minerals mining and operations by 2045, and invest in the company's operations beyond 2060.
LKAB, the second largest producer of iron ore pellets in the world, said it will invest 10-20 billion SEK per year ($ 1.15-2.3 billion per year) over 15-20 years in digitalization, automation , electrification, new ways of working and reducing carbon dioxide emissions. LKAB emits 700,000 tonnes of this gas into the Earth's atmosphere annually, or about 4% of Sweden's total industrial emissions, and is the fourth largest emitter in Sweden.
"In addition to this, there will be investments in expanding the use of renewable energy and hydrogen to make the transformation possible," it said. “LKAB is undergoing the largest transformation in its 130-year history and could be the largest investment in the industry in Sweden.
LKAB has started using biofuels to burn some of its iron ore pellets, which are used in the HYBRIT pilot plant based on green hydrogen DRI, in which LKAB is a shareholder in SSAB and the energy company Vattenfall.
The steel sector accounts for about 7% of the world's energy-related emissions.
Just over two-thirds of the world's steel is produced in blast furnaces that use iron ore and coal. The rest is mainly for electric arc furnaces (EAF), which melt ferrous scrap, and a small part for direct reduced iron.
Several companies in Europe are planning to introduce or are already operating new direct reduction units for iron using hydrogen fuel. These plants will use hydrogen and in some cases natural gas initially until commercial quantities of hydrogen are available and the necessary electricity and gas supplies are realized.
“By moving from iron ore pellets to carbon dioxide free sponge iron, we will take an important step forward in the value chain and add value to our products by giving our customers direct access to carbon dioxide free iron for steel making.” - highlighted in LKAB.