Tag Archives: HYBRIT

LKAB-HYBRIT

The HYBRIT initiative receives major funding for fossil-free steelmaking developments

The HYBRIT initiative has received support from the Industrial Leap (Industriklivet), Swedish Energy Agency’s program to support Swedish industry’s transition to fossil-free, with a total of SEK3.1 billion ($302 million) granted for the establishment of a first demonstration plant in Gällivare, Sweden, for the production of fossil-free sponge iron on an industrial scale.

LKAB is responsible for the construction of the planned plant and will be the main recipient of the support.

Jan Moström, President and CEO of LKAB, said: “The processing and production of fossil-free sponge iron is central to the climate and to Swedish competitiveness. We are pleased with the announcement that the state is participating and sharing the initial risk in this crucial step to industrialise the HYBRIT technology. In order to counter climate change, we need to move forward quickly, and to keep up the pace, it is important that we get all the prerequisites in place for future investment decisions.”

Hybrit Development AB (HDAB), owned by LKAB, SSAB and Vattenfall, had originally applied for SEK4.9 billion in support from Industriklivet for the next step in the development of the HYBRIT initiative. On October 31, 2023, HDAB and LKAB submitted a supplementary application stating that LKAB will be responsible for the construction of the planned demonstration plant and will also be the main recipient of the requested support. At the same time, the amount of aid applied for was reduced to SEK3.7 billion.

The demonstration project is one of 35 projects from 12 EU countries that are part of the Hy2Use IPCEI integrated project. IPCEI stands for Important Projects of Common European Interest and enables EU Member States to provide government support to priority initiatives with a strategic common European interest.

Robert Andrén, Director General of the Swedish Energy Agency, said: “The future competitiveness of Swedish industry lies largely in becoming fully fossil-free. Therefore, the investments made in Industriklivet are of great importance, not only for the sake of the climate and the environment, but also for the supply of skills and employment in both new and old industrial locations in our country. The decision we are now taking is the largest financial decision made so far in this work and it is an important one.”

Although the HYBRIT technology has been tested and proven successful, it has not yet been fully used on a large scale. The support now granted is intended to be used to get past the initial stage, from pilot to industrial production, with a first demonstration plant planned at LKAB’s industrial area in Gällivare. This is in line with the development of the HYBRIT cooperation and the aim of developing a fossil-free value chain for iron and steel production with fossil-free electricity and hydrogen.

The plan for the demonstration plant is to produce over 1.3 Mt/y of sponge iron, volumes intended for SSAB’s transition. With sponge iron produced with hydrogen instead of coal, carbon dioxide emissions in the steel industry can be largely eliminated by replacing coal-fired blast furnaces with electric arc furnaces, the initiative says.

Martin Pei, EVP and CTO, SSAB, said: “We welcome the decision as an important signal of the potential of the green transition for Swedish competitiveness. We have started the transition of SSAB’s steel production in the Nordic region, which will reduce carbon dioxide emissions in Sweden and Finland by ten and seven percent respectively in around 2030. The HYBRIT technology has made us global pioneers in fossil-free steel production and we look forward to scaling up our pilot deliveries of fossil-free steel to commercial levels. Today’s announcement is therefore important for our strategy going forward.”

The electricity demand for the demonstration plant with HYBRIT technology is estimated at about 5 TWh/y at full operation and is primarily for large-scale production of fossil-free hydrogen needed for the direct reduction process.

Andreas Regnell, SVP Head of Strategic Development at Vattenfall, said: “This is gratifying news, for the climate, but also for Sweden’s future competitiveness. Cooperation on the entire fossil-free value chain for fossil-free steel has proved successful. This and access to competitive fossil-free electricity is and will be crucial to the success of the transition. Sweden already has a fossil-free electricity system, and thus has an advantage over most other countries in the world, but now we need to ensure that we expand the supply of fossil-free electricity and hydrogen in line with the needs of industry. Vattenfall is investing in fossil-free electricity production, transmission and development of flexible technologies, such as hydrogen storage, to contribute to continued competitive energy supply.”

The owner companies in HYBRIT have accounted for approximately 75% of the financing for the technology development. SSAB, LKAB and Vattenfall have together invested one third each, a total of about SEK1.7 billion in a feasibility study for the pilot phase, implementation of the pilot and a feasibility study for the demonstration phase. HYBRIT has previously been granted more than SEK520 million in state aid.

LKAB has begun transitioning its mining and processing operations with the goal of making all products and processes carbon-free by 2045 – a step-by-step transition for sponge iron production that will reduce carbon dioxide emissions from customers around the world by 40-50 Mt/y, equivalent to Sweden’s entire annual greenhouse gas emissions. In May 2023, LKAB submitted an application for the environmental permit necessary to begin the transition.

Moström added: “This is a huge opportunity for Sweden and for the climate. Our high-quality iron ore combined with good access to fossil-free energy gives us unique conditions compared to other countries to establish a sustainable and competitive value chain for the fossil-free iron and steel production of the future. Now it is important that we as a society take advantage of these benefits and build competitiveness while attacking emissions.”

The planned construction of the demonstration plant builds on the positive results achieved in the HYBRIT initiative, where the pilot operations in Luleå continue to play an important role in the development of the technology, the companies say. The jointly owned research and development company Hybrit Development AB will continue to develop the technology with the aim of eventually licensing it to licensees outside the current circle of owners.

Sandvik secures SSAB fossil-free steel for loaders and trucks

Sandvik Mining and Rock Solutions and SSAB have signed a letter of intent to secure fossil-free steel for use initially in the production of Sandvik’s loaders and trucks.

SSAB aims to deliver fossil-free steel to the market on a commercial scale during 2026, and the letter of intent ensures Sandvik secures its required volumes within the company’s production capacity. As a fossil-free partner to SSAB, Sandvik can also apply for early fossil-free sample deliveries of, for example, a prototype frame, loader bucket or truck box to be used in a demo or concept product.

“Sustainability is at the core of our business strategy,” Mats Eriksson (pictured on the left), President of Sandvik Mining and Rock Solutions, said. “As the market demand for fossil-free products increases in the years ahead, this partnership will enable us to offer our mining customers solutions with a drastically reduced CO2 footprint.”

Johnny Sjöström (pictured on the right), Head of SSAB Special Steels, said: “We’re excited about supporting the sustainability journey of our customers in the mining industry. Fossil-free steel has the same high quality as traditional steel but with but with hardly any environmental impact. It will help to reduce our customers’ carbon footprint and offer a competitive advantage in the market.”

SSAB delivered the first steel made of hydrogen-reduced iron in 2021. The steelmaker works with iron ore producer LKAB and energy company Vattenfall as part of the HYBRIT initiative to develop a value chain for fossil-free iron and steel production, replacing coking coal traditionally needed for iron ore-based steelmaking with fossil-free electricity and hydrogen. This process virtually eliminates carbon dioxide emissions in steel production.

BHP and Hatch commence design study for an electric smelting furnace pilot

BHP and global engineering, project management and professional services firm, Hatch, have signed an agreement to design an electric smelting furnace pilot (ESF) plant in support of a decision to construct this facility in Australia.

The facility will aim to demonstrate a pathway to lower carbon dioxide (CO2) intensity in steel production using iron ore from BHP’s Pilbara mines for BHP’s steelmaking customer, BHP says.

The small-scale demonstration plant would be used to collaborate with steel producers and technology providers to generate and share learnings with the aim of accelerating scale up of ESF plant designs.

The pilot facility would be intended to test and optimise production of iron from the ESF, a new type of furnace that is being developed by leading steel producers and technology companies targeting low CO2 emission-intensity steel. The ESF is capable of producing steel from iron ore using renewable electricity and hydrogen replacing coking coal, when combined with a direct reduced iron (DRI) step. Estimates show that reductions of more than 80% in CO2 emission intensity are potentially achievable processing Pilbara iron ores through a DRI-ESF pathway, compared with the current industry average for the conventional blast furnace steel route, BHP says.

The ESF allows for greater flexibility in input raw materials, addressing a key barrier to wider adoption of other lower CO2 emissions production routes, such as use of electric arc furnaces which are designed for scrap steel and high grade DRI only. The ESF also has the potential to be integrated into a steel plant’s existing downstream production units.

The pilot facility will enable deeper and more accurate insights into the performance of this technology for converting iron ores into molten iron and steel. Planned test programs will help de-risk further investment in commercial scale projects, thereby complementing development plans of BHP’s steel customers. This scale-up approach has been utilised by other industry demonstrations such as Sweden’s HYBRIT project, BHP added.

BHP and Hatch will assess several locations in Australia for the proposed facility based on supporting infrastructure, technology skills and the availability of local partnerships to build and operate the facility.

BHP’s Chief Commercial Officer, Vandita Pant, said: “We see the ESF process as a critical breakthrough in significantly reducing the carbon emissions intensity of steel production and one that provides an opportunity for iron ore from our Pilbara mines. The steel industry has identified the ESF as a viable option to use a wider range of raw materials and steel companies globally are looking to build commercial-scale ESF plants as part of their CO2 emission reduction roadmaps.”

BHP’s Group Sales and Marketing Officer, Michiel Hovers, said: “Hatch is a key partner in carbon emissions reduction initiatives across the world. We are pleased that we can collaborate with Hatch, alongside BHP’s existing customer and research partnerships, to further progress the development of pathways towards a lower GHG emission footprint for the steelmaking industry. The ESF technology is very exciting and potentially very relevant for reducing the carbon emissions intensity of steel production and provides new and exciting opportunities for our Pilbara iron ore and our customers.

“BHP and Hatch have collaborated on steel technology and design for reducing GHG emissions from over several years, including the ESF and in collaboration with steel producers, and this project is a natural progression in our partnership.”

Hatch’s Managing Director for Bulk Metals, Joe Petrolito, said: “Hatch is excited to collaborate with BHP on this forward-looking initiative and is honored to contribute to the efforts of an industry leader who is dedicated to driving tangible progress. This project marks a significant milestone in the pursuit of decarbonisation within a challenging sector that underpins global infrastructure and progress.”

Epiroc to use SSAB fossil-free steel on prototype battery-electric Minetruck MT42 truck

Epiroc says it is pioneering a battery-electric underground mine truck prototype made from fossil-free steel in line with the company’s vision to produce the world’s greenest machines.

This partnership with Swedish steelmaker SSAB, Epiroc says, accelerates the journey towards reduced carbon-dioxide emissions, ultimately helping mining companies reach their climate goals.

In partnership with steel manufacturer SSAB, Epiroc is now prototyping an underground mine truck with a dump box made of fossil-free steel, the battery-electric Minetruck MT42. The result is a 10-t reduction of CO2 emissions per manufactured dump box, the equivalent of taking five gasoline cars out of service for an entire year, Epiroc said.

The partnership will help Epiroc accelerate its journey to create a more sustainable future, deliver the world’s greenest machines and support its customers.

“Our innovation agenda goes hand in hand with our customers’ sustainability agenda,” Sami Niiranen, President of Epiroc’s Underground division, says. “In the shift to a new, low-carbon economy, our products and services will be a key contributor for our customers to meet their climate goals.”

SSAB aims to deliver fossil-free steel to the market in commercial scale during 2026, and delivered the first steel made of hydrogen-reduced iron in 2021. SSAB works with iron ore producer LKAB and energy company Vattenfall in Sweden as part of the HYBRIT initiative to develop a value chain for fossil-free iron and steel production, replacing coking coal traditionally needed for iron ore-based steelmaking, with fossil-free electricity and hydrogen. This process virtually eliminates carbon dioxide-emissions in steel production.

“The development of new technologies is essential to enable the transition to a low-carbon economy,” Johnny Sjöström, Head of SSAB Special Steels, said. “Our fossil-free steel immediately reduces the carbon footprint to near zero without compromising the high quality and properties you would expect from SSAB steels. It is the same steel, just without the negative environmental impact.”

The battery-electric Minetruck MT42 is a breakthrough for Epiroc’s sustainable innovation, the company said. It is a significant step in the company’s ambition to produce cutting-edge, environmentally smart mining equipment. It is emissions-free in operation, generating a strong positive impact on the climate as well as on operators’ work environment and productivity, according to the OEM.

“We all play a part in creating a more sustainable future,” Camilla Goldbeck-Löwe, Vice President Corporate Responsibility at Epiroc, said. “Our partnership with SSAB has enabled us to present the world’s first underground mine truck made using fossil-free steel.”

Boston Metal looks to disrupt and decarbonise steel and iron ore industries

Boston Metal is looking to decarbonise the steel-making sector at the same time as helping iron ore producers with their Scope 3 emissions dilemma.

The concept of ‘green steel’ has been widely discussed over the last few years, with LKAB, SSAB and Vattenfall’s HYBRIT project being the most cited case study, thanks to both its advanced stage of development – it has already produced fossil-free steel on a trial basis – and its revolutionary way of introducing hydrogen in place of coke as the iron ore reduction method in the steel-making process.

SSAB and LKAB are leveraging HYBRIT to completely transform their production processes: SSAB is building new hydrogen-based steel making facilities able to match its current base of 8.8 Mt/y of steel by 2030 and LKAB is moving from iron ore pellet production to direct reduced iron (DRI) in line with this.

Tadeu Carneiro, Chairman & CEO of Boston Metal

The ambitions of such a project are impressive, but can such a green steel-making process be applied to the circa-1,900 Mt of steel currently being produced for the world market?

The answer is no, according to Tadeu Carneiro, Chairman & CEO of Boston Metal.

He expands on this: “There are four ways of reducing iron oxides into a metal for steel-making. One is through the use of carbon; another way is through using another metal as a reductant, which is currently not feasible; the third one is with hydrogen, which is possible – as HYBRIT has shown – but is limited to premium iron ores; and the last is through our solution.”

The solution in question is – like HYBRIT – a green option, but – unlike HYBRIT – is applicable to all iron ores, regardless of grade, according to Carneiro.

Boston Metal’s process, which it calls Molten Oxide Electrolysis (MOE), works by adding iron ore to an electrolytic cell and passing electricity through said cell. The electricity both breaks the bonds of the iron oxides present, as well as heats up the whole batch within the cell, creating molten iron that sinks to the bottom of the cell ready for collection (tapping).

During the bond breaking and heating process, MOE produces oxygen as a by-product, with the resultant oxides forming the electolyte and remaining in said electrolyte (floating above the liquid iron).

“Because it is molten, the iron gets separated from the electrolyte and sits in the bottom of the cell,” Carneiro said. “As the molten iron is heavier than the electrolyte, the impurities float to the top and can be tapped separately.”

So, not only do companies using MOE get a molten iron product, they also get a slag by-product that can be used in various applications in the construction industry – all without using coking coal or coke.

“In traditional blast furnace-based steel making, you have to pelletise or sinter the iron ore, you need to process coking coal into coke and you then have to mix the two in the blast furnace and blow air to get pig iron,” Carneiro explained. “This pig iron contains around 4% carbon, which needs to be burnt off through, typically, a process in the basic oxygen furnace to get molten iron.”

Boston Metal’s MOE process gets to this same point using just iron ore and electricity, according to Carneiro.

“All of this is replaced by a battery of cells that, when assembled in significant numbers, can compete with blast furnaces in terms of molten iron capacity,” he said.

Carneiro expanded on what he meant by ‘significant numbers’, offering up an example of 300 MOE modules assembled in two lines of 150 able to produce 1 Mt of steel.

And all of this is in an incremental capital expenditure range within the millions of dollars, instead of the billions of dollars often required to build a traditional steel-making plant.

This puts a green process in the reach of not only steel-makers but iron ore producers, according to Carneiro.

“If you have green electricity at an iron ore mine, you can bring the cells there, melt the iron and ship a metallic product to steel-makers,” Carneiro said.

This pure iron product can be remelted elsewhere and processed into flat and long steel products for the automotive and construction industries.

“This represents a higher value-added product for iron ore miners, enabling them to ship a product that is 40% lighter in terms of weight,” Carneiro explained.

Finding a ‘green’ end-user that brings down a miners’ Scope 3 emissions while holding a molten iron ore product is a lot easier than finding one when shipping iron fines, concentrate or sinter: hence the reason why iron ore miners’ Scope 3 emission goals appear a lot less ambitious than the Scope 1 and 2 targets within their control.

It is no wonder BHP and Vale have been early backers of Boston Metal.

It sounds too good to be true, and there is a reason for that.

From speaking to Carneiro, the company could start producing molten iron through the chosen method today – not at a scale the steel-industry would yet consider commercial, but at a pilot scale at least.

For the commercial process to be considered green, the company would need renewable electricity to do this; and lots of it.

Carneiro doesn’t shy away from this, explaining that MOE will require 4 MWh of electricity per tonne of steel to work at such a scale. This is the equivalent of up to 500 MW for a 1 Mt/y molten iron plant.

The incumbent process Carneiro and his US-based team are looking to take market share from requires 5.5-6 MWh of energy per tonne of steel, while the electric arc furnace (EAF) method of making steel – which uses predominantly scrap metal – has a much smaller electricity requirement.

“If you had 2 billion tonnes of scrap to be melted, the EAF route is the best way to make steel, hands down,” Carneiro admits. “The problem is you don’t have such scrap availability and, in order to increase supply, you would need lots more steel coming from iron ore.”

For reference, the HYBRIT process is expected to require 600 MW of hydrogen electrolyser capacity to 2025 to get LKAB to the 1.3 Mt/y sponge iron (DRI) mark.

Yet, scrap steel is not the only thing in short supply currently. Green electricity is far from abundant, with only the likes of Quebec (hydro power capacity) and some Nordic countries having a plentiful supply – a fact Carneiro acknowledges.

“If you don’t believe that green electricity will be available, abundant, reliable and cheap in the future, you can forget about the MOE process,” he said. “But then you also have to forget about a lot of other processes that are set to use green electricity and the massive amounts of investment the green energy space is seeing on an annual basis.

“Society has decided to go electric and to go electric in a green way, so it is only reasonable to expect that, in the future, electricity will be all of this.”

Carneiro is planning for such a transition, with his company in the process of commissioning a full-size industrial MOE cell at its Woburn, Massachusetts headquarters. This could be ready as early as next month.

It follows a trial of a pilot cell at Brazil-based ferroniobium producer CBMM’s production plant in Araxá, Brazil, where the technology was able to use the same process to turn niobium ore into high-value ferroniobium-based products.

“We were able to prove out the process with CBMM on a smaller scale, which has given us the confidence to make a much bigger cell.”

The company plans to use this bigger cell and, through a subsidiary in Brazil, take advantage of other opportunities to extract value from mining waste using the MOE technology. This could see Boston Metal assemble a battery of MOE cells to manufacture some 5,000-10,000 t of high value-added metals.

While this is deemed ‘pilot scale’ for steel producers, it is sizeable for those producing high value-added products such as niobium, vanadium, tantalum, chrome and others, Carneiro said. And the project will only aide the company’s steel-making ambitions.

“By developing the cell for these high value-added metals, we are finding lots of the answers for the steel-sized cells as well,” he said.

Such groundwork today is preparing the company for a time when steel-makers and iron ore miners have assessed the green electricity landscape and are ready to invest in such technology.

“All the leading steel-making companies have made pledges to be carbon neutral by the 2050s,” Carneiro said. “This means they need to phase out carbon reduction by the mid- to late-2030s. By this point in time, we will be ready to offer our solution on a commercial scale, allowing them to take advantage of the abundance of iron ores – low and high grade – around the world.”

HYBRIT partners inaugurate fossil-free hydrogen gas storage pilot facility

SSAB, LKAB and Vattenfall have, today, inaugurated HYBRIT’s pilot facility for fossil-free hydrogen gas storage at Svartöberget in Luleå, Sweden.

The rock cavern storage facility is the first of its kind in the world, with the inauguration ceremony marking the start of the two-year test period, which will run until 2024.

The HYBRIT initiative was launched in 2016 by the three owners: SSAB, LKAB and Vattenfall. Within this, the hydrogen storage facility will play a very important role in the overall value chain for fossil-free iron and steel production. Producing fossil-free hydrogen gas when there is a lot of electricity, for example when it is very windy, and using stored hydrogen gas when the electricity system is under strain, will ensure a steady production of sponge iron, the raw material behind fossil-free steel, the partners said.

The technology for storing gas in a lined rock cavern (LRC) is well proven and has been used in southern Sweden for about 20 years for storing natural gas, the partners says. Now the technology is taking a step forward by the development for storage of hydrogen gas. The storage facility is set to be used more dynamically, being filled and emptied at pace with the hydrogen production.

The pilot plant has a size of 100 cu.m. At a later stage, a full-scale hydrogen gas storage facility measuring 100,000-120,000 cu.m may be required, in which case it will be able to store up to 100 GWh of electricity converted to hydrogen gas, which is sufficient to supply a full-sized sponge iron factory for three to four days.

Andreas Regnell, Chairman of the Board, Hybrit Development AB (HDAB), and Senior Vice President and Head of Strategic Development at Vattenfall, said: “We want to develop HYBRIT so that it is in line with the electricity system of the future, with more weather-dependent electricity generation. The storage facility is unique and, once again, the HYBRIT initiative is taking the lead in the fossil-free transition. HYBRIT is very important for facing the climate challenge and enabling fossil-free living within one generation.”

Martin Pei, CTO at SSAB, added: “SSAB has the opportunity to transform our operations and cut 10% of Sweden’s total carbon dioxide emissions as well as 7% of Finland’s, and this will take us one step closer to our goal. The hydrogen storage facility is an important piece of the puzzle in ensuring stable steel production and a milestone in the development of HYBRIT.”

Lars Ydreskog, Senior Vice President Strategic Projects at LKAB, said hydrogen gas and its storage were central to its transition.

“In four years, HYBRIT technology will be used on a large scale in the first demonstration plant in Gällivare, and the plan is to then build more sponge iron factories,” Ydreskog said. “LKAB will, therefore, need to become one of Europe’s biggest hydrogen producers, and this pilot project will provide valuable knowledge for the continuing work on creating the world’s first fossil-free value chain for the iron and steel industry.”

Using HYBRIT technology, SSAB can reduce Sweden’s carbon dioxide emissions by 10%. SSAB, LKAB and Vattenfall have invested a total of SEK259 million ($25 million) in the hydrogen storage itself, divided into three equal parts, and the Swedish Energy Agency has contributed with SEK72 million.

LKAB accelerates carbon-dioxide-free sponge iron plans

LKAB says it is boosting both the pace and the level of ambition of its plans towards transitioning to carbon-dioxide-free sponge iron following a successful exploration program.

A dramatic increase in mineral resources means that the plan for future production of sponge iron has been upped to 24.4 Mt/y by 2050. This will enable a reduction in carbon dioxide emissions among global steel industry customers corresponding to nearly all of Sweden’s current greenhouse gas emissions, LKAB says.

“The climate can’t wait and demand for the raw material for producing fossil-free steel is already upon us – before we have even reached the market,” Jan Moström, LKAB’s President and CEO, said.

In March 2022, LKAB reported increased mineral reserves and mineral resources, referencing deposits containing about 4,000 Mt, which will enable production far beyond 2060. LKAB’s known mineral reserves and resources now add up to double the amount thus far mined in the company’s 130-year history.

“We are accelerating and expanding the plans for future production of sponge iron produced with hydrogen,” Moström said.

LKAB is now moving towards a rapid industrialisation of the HYBRIT technology for transforming production in Malmberget/Gällivare, which is closely integrated with SSAB. The plan is to synchronise the transition with SSAB’s planned transition and to have switched entirely from pellet production to sponge iron amounting to some 5.4 Mt by the 2030s. This will enable emissions reductions amounting to about 9 Mt at SSAB.

Moström added: “After the most recent climate reports from the UN, the urgency of the climate issue must be obvious to everyone. We can see that this transition also makes good business sense and that it creates jobs, growth and yield on investments. By leading the way towards the green transition, we are also building Sweden’s competitive advantage internationally.

“The entire value chain must undergo a transformation, and quickly. The HYBRIT technology, which we have developed in collaboration with SSAB and Vattenfall, will be industrialised starting in Gällivare, where the first plant will be operational in 2026. The capacity increase LKAB is now planning corresponds to three more such facilities in Malmberget/Gällivare within barely a few years after commissioning of the first HYBRIT plant.”

When the transition has been completed, with increased production, by around 2050, the target is for LKAB to produce 24.4 Mt/y of sponge iron, with zero carbon dioxide emissions. By removing the oxygen from the iron ore by means of electrically-produced hydrogen gas, instead of the steel mills using fossil carbon in blast furnaces, LKAB can enable reductions in carbon dioxide emissions of between 40-50 Mt/y at steelmaking customers. That corresponds to nearly all of Sweden’s current annual greenhouse gas emissions.

A rapid transition places higher demands on fossil-free electricity and more power distribution infrastructure. LKAB’s demand, needed mainly for hydrogen gas production, is estimated at 20 TWh/y by 2030, increasing to 50 TWh/y by 2040 and finally reaching 70 TWh/y when the entire expansion has been realised by 2050.

“To make the climate transition a reality, we will need a massive expansion of power production and distribution,” Moström said. “We need to double electricity production within the next 25 years, and the iron and steel industry value chain is waiting for very other TWh of this.”

The switch from pellets to sponge iron also means that the value of the product increases significantly, according to LKAB.

Moström concluded: “In terms of today’s market prices, this expansion would triple LKAB’s revenue. By building up production of sponge iron, we are increasing the value of LKAB’s, and thereby Sweden’s, mineral reserves and resources, and creating growing export values. Above all, we are making an enormous effort for the benefit of the climate.”

Epiroc, SSAB to partner on fossil-free steel use in mining equipment

Epiroc says it is starting a partnership with steelmaker SSAB to secure fossil-free steel for use in the production of Epiroc’s mining equipment.

SSAB aims to deliver fossil-free steel to the market in commercial scale during 2026, and delivered the first steel made of hydrogen-reduced iron in 2021. It is working with iron ore producer LKAB and energy company Vattenfall as part of the HYBRIT initiative to develop a value chain for fossil-free iron and steel production, replacing coking coal traditionally needed for iron ore-based steelmaking, with fossil-free electricity and hydrogen. This process virtually eliminates carbon dioxide-emissions in steel production, according to the HYBRIT partners.

Epiroc will initially use fossil-free steel for material for a prototype underground machine produced at its facility in Örebro, Sweden, and the plan is to increase the usage of fossil-free steel over time.

“Sustainability is integrated in everything we do, and we are committed to halving our CO2e emissions by 2030,” Helena Hedblom, Epiroc’s President and CEO, says. “This exciting partnership with SSAB will support us and our customers on the journey to reach our very ambitious climate goals. It is clear that our innovation agenda goes hand-in-hand with our customers’ sustainability agenda.”

Martin Lindqvist, SSAB’s President and CEO, said: “We are very happy to welcome Epiroc in our partner group and look forward to the fossil-free steel collaboration.It’s a natural next step in our joint efforts to mitigate climate change. Demand for fossil-free steel is increasing, which is one of the reasons for SSAB to bring forward its green transition with the ambition to largely eliminate carbon dioxide emissions around 2030.”

In the shift to a low-carbon economy, development of new technologies like this is crucial for making the transition possible, Epiroc says. The partnership with SSAB fits well with Epiroc’s ambitious sustainability goals for 2030, including halving its CO2e emissions.

In 2021, Epiroc received validation from the Science Based Targets initiative (SBTi) for its targets to reduce emissions in own operations as well as when customers use the sold products. The SBTi validated Epiroc’s climate targets as being in line with keeping global warming at a maximum 1.5°C, consistent with the latest climate science and the goal of the Paris Climate Agreement. In addition, Epiroc’s 2030 sustainability goals include halving its CO2e emissions in transport as well as from relevant suppliers, having 90% renewable energy in own operations, and offering a full range of emissions-free products.

Last year, Volvo Group revealed what it said was the world’s first vehicle made of fossil-free steel from SSAB, plus announced that more vehicles will follow in 2022 in what will be a series of concept vehicles and components using the material.

Nordic Iron Ore plotting entry into steel’s circular economy at Blötberget

With the world’s first hydrogen-reduced sponge iron having just been produced, most of the globe’s iron and steel companies are evaluating how they can continue to play a role in the steel-making industry of the future.

The HYBRIT project milestone in Sweden has global ramifications for a sector that is among the three biggest producers of carbon dioxide, according to McKinsey. Incorporation of fossil-free technology to produce ‘green iron’ that can lead onto ‘green steel’ is viewed as one of the ways the sector can clean up its act and stay relevant in a society that is increasingly focused on greenhouse gas emissions and sustainability.

Nordic Iron Ore, the owner of the Blötberget iron ore project in the Bergslagen mining region of Sweden, is one of a few companies blessed with the potential to produce higher-grade magnetite that could fit into this brave new steel-making world.

Paul Marsden, Technical and Marketing Advisor for Nordic Iron Ore, explains: “There is a lot of investment interest in Sweden and elsewhere for projects associated with these goals. We’re looking at how our place in that might work, but, as we have demonstrated that we can make products in excess of 71% Fe, I would suggest that we can definitely fit the bill.”

It is not only the grade of iron Nordic Iron Ore intends to produce that is in its favour in this regard; the asset it intends to extract ore from is a past producer, having last closed up shop in 1979.

The old headframe in Blötberget

The most recent estimates state that the company could produce upwards of 4 Mt/y of high-quality iron ore at full tilt from an underground operation. The initial development, Blötberget, is planned as an underground post pillar cut and fill (PPCF) mine using backfill to reduce surface impact and maintain the high-grade of the run-of-mine ore after extraction. Construction is envisaged to take around two years, with an aim to use as much of the project’s magnetite resources as possible.

“At the moment, we’re still going to be a niche producer with low tonnages,” Marsden told IM. “Phase one is likely to start at around 1.65 Mt/y, but phase two and three could get us up to 4-5 Mt/y of high-quality products.

“At the same time, we see ourselves fitting into a changing European steel scene where you have got to be looking at lower carbon output, higher productivity per unit and a move into pelletising or DRI (sponge iron) as a high priority.”

How the company will do this is still to be confirmed, but some of the recent agreements Nordic Iron Ore has signed indicate there is intent behind the ambitions.

It has enlisted the help of Paterson & Cooke to evaluate alternatives for its waste management process (fine tailings were previously anticipated to be deposited in an existing tailing dam) that “significantly reduces the environmental impact of the mining operations but is also attractive from an economic standpoint”.

It has enlisted the help of Sweden-based VB Energi to supply electricity to the site from renewable sources.

Nordic Iron Ore took part in the Smart Exploration project, an EU-funded collaboration between universities and companies from eleven countries. One of the project’s aims was to develop environmentally-friendly methods of geophysical exploration, with Smart Exploration teams conducting several evaluations at Ludvika Mines (part of the Blötberget project) using prototype equipment producing more accurate measurements primarily in the fields of seismology and electromagnetics

It has also signed an MoU with Epiroc Sweden, with the two companies cooperating on the mining project development.

Nordic Iron Ore’s CEO, Lennart Eliasson, said this OEM partnership, in particular, was important to the company’s aims of operating a modern mine able to deploy the latest technologies for high productivity and safety, and long-term sustainability.

Marsden provided a bit more background on this agreement: “The definitive feasibility study we had previously completed with Golder Group by the end of 2019 was what you would consider a ‘traditional mine’ – it included diesel-powered loading and haulage with operators. It wasn’t really what we were aiming for, but it gave us an economic study to go to market with.

“We have since had conversations with the likes of Epiroc, ABB and others at the forefront of pushing new technologies like automation, electrification and digitalisation. They are interested in producing a ‘showcase mine’ for Sweden.”

Marsden says there is potential for leveraging the technology learnings on projects such as LKAB’s Kiruna and Konsuln mines, Boliden’s underground operations and Lundin Mining’s Zinkgruvan operation to make Blötberget “future ready”.

He added: “We cannot automate and electrify it all from the off, but we can lay the groundwork to eventually automate and electrify just about everything in the mine.”

What the company needs now is backing from investors to solidify its plan for Blötberget.

Some $8-10 million should allow the company to assess improvements – the potential to access old resources close to a planned underground decline, earlier revenue generators such as toll treatment of high-grade concentrate, and right-sizing the process flowsheet – and bolster the team to see it through mine construction.

After that, it will be a matter of aligning with offtake partners intent on sustainable steel production with a premium iron ore concentrate that suits the industry’s ‘green’ sentiment.

HYBRIT partners produce world’s first hydrogen-reduced sponge iron

SSAB, LKAB and Vattenfall say they have now produced the world’s first hydrogen-reduced sponge iron at a pilot scale.

The technological breakthrough in the HYBRIT initiative captures around 90% of emissions in conjunction with steelmaking and is a decisive step on the road to fossil-free steel, the partners say.

The feat from the HYBRIT pilot plant in Luleå, Sweden, showed it is possible to use fossil-free hydrogen gas to reduce iron ore instead of using coal and coke to remove the oxygen. Production has been continuous and of good quality, the companies said, with around 100 t made so far.

This is the first time ever that hydrogen made with fossil-free electricity has been used in the direct reduction of iron ore at a pilot scale, according to the HYBRIT partners. The goal, in principle, is to eliminate carbon dioxide emissions from the steelmaking process by using only fossil-free feedstock and fossil-free energy in all parts of the value chain.

Hydrogen-based reduction is a critical milestone, which paves the way for future fossil-free iron and steelmaking. SSAB, LKAB and Vattenfall intend, through HYBRIT, to create the most efficient value chain from the mine to steel, with the aim of being first to market, in 2026, with fossil-free steel at an industrial scale, they say.

Last year, HYBRIT, a joint initiative of SSAB, LKAB and Vattenfall, began test operations to make hydrogen-reduced sponge iron in the pilot plant built with support from the Swedish Energy Agency. The technology is being constantly developed and the sponge iron that has been successfully made using hydrogen technology is the feedstock for the fossil-free steel of the future, they say.

Jan Moström, President and CEO at LKAB, said: “This is a major breakthrough both for us and for the entire iron and steel industry. LKAB is the future supplier of sponge iron and this is a critical step in the right direction. Progress with HYBRIT enables us to maintain the pace in our transition and, already in 2026, we will begin the switch to industrial-scale production with the first demonstration plant in Gällivare, Sweden. Once LKAB has converted its entire production to sponge iron, we will enable the transition of the steel industry and reduce global emissions by around 35 Mt a year, which corresponds to two thirds of Sweden’s entire emissions. This is the greatest action we can take together for the good of the climate.”

Martin Lindqvist, President and CEO at SSAB, added: “This technological breakthrough is a critical step on the road to fossil-free steel. The potential cannot be underestimated. It means that we can reach climate goals in Sweden and Finland and contribute to reducing emissions across Europe. At the same time, it creates new jobs and export successes. SSAB’s transition means we will reduce carbon dioxide emissions by 10% in Sweden and 7% in Finland. High-strength fossil-free steel will also allow us to help our customers to strengthen their competitiveness. As early as this year, we will deliver minor quantities of steel made using hydrogen-based reduction to customers, and in 2026 we will deliver fossil-free steel at a large scale.”

The hydrogen used in the direct reduction process is generated by electrolysis of water with fossil-free electricity, and can be used immediately or stored for later use, according to the partners. In May, HYBRIT began work on building a pilot-scale hydrogen storage facility adjacent to the direct reduction pilot plant in Luleå.

Anna Borg, President and CEO at Vattenfall, said: “Sweden’s and Vattenfall’s fossil-free electricity is a basic requirement for the low carbon footprint of hydrogen-reduced sponge iron. The breakthrough that we can announce today shows in a very real way how electrification contributes to enabling a fossil-free life within a generation.”