Tag Archives: hydrogen

State of Play mine electrification report sheds light on benefits, hurdles and risks

More than half of mining industry executives say they would electrify their mine sites for cost reasons, according to the latest State of Play report on electrification.

With the mining industry rapidly adopting new technologies to decarbonise their operations, the Australia-based State of Play platform has, again, sought to gather industry perspectives on the reasons companies are pursuing their shift away from fossil fuels.

The latest report follows the inaugural State of Play: Electrification report, released in 2020. This report, in part, led to the formation of the Electric Mine Consortium, a collaboration between mining and service companies aiming to accelerate progress towards the fully electrified zero CO2 and zero particulates mine.

The findings from the latest report – which took into account 450-plus individual surveys, five industry webinars and workshops and five interviews with “thought leaders” – have reinforced that mine electrification is a foundation enabler for the clean energy transformation of mine sites.

“The mining industry sees it as one of the most pressing transformation imperatives for the industry, facilitating precision automation and the digitisation of mine operations, whilst improving environmental and health outcomes,” it said.

At the same time, the report acknowledges that mine electrification technology is currently undergoing a “maturation process” with 49% of mining CEOs referenced in the report believing it will take existing mines on average five-to-10 years to electrify.

“Much of the technology for full electrification of mine sites is available today, however a significant knowledge gap exists across industry relating to the capability of electrified mines and the strategy for implementation,” it said.

Of the industry executives surveyed for the report, 57% expect the energy transition to be ‘the’ global trend that will have the biggest impact on the industry over the next 15 years.

Close to 90% (89%) expect mine sites will electrify within the next 20 years and 61% expect the “next generation” of mines will be all-electric.

In keeping with this, 83% expect renewable energy technologies will significantly change mining operations over the next 15 years; and 98% view mine automation as ‘the’ technology to benefit the most from electrification.

The responses related to benefits expected from this transition brought up some of the most interesting insights into the mine electrification evolution, indicating there are environmental, cost and reputation risk advantages associated with electrifying operations.

For instance, of the survey respondents, just over 90% (91%) expected the shift to an electrified system to create opportunities for new business models, while just over half (53%) say they would electrify their mine sites for cost reasons. The latter indicates that the cost of operating, establishing and maintaining new electrified equipment and infrastructure is now at a point where it could not only compete, but provide an economic advantage over fossil fuel-powered operations in the long term.

Close to four-fifths of respondents (79%) expect there to be a health-related industry class action in the next 15 years – indicating the reputational risk that could come with maintaining the operational status quo.

Some 71% view processing and 68% view extraction as having the greatest leverage in decarbonising the mining value chain, the report confirmed, while 46% expect innovation in carbon emissions and 42% expect innovation in diesel replacement will have the greatest environmental benefit in their business. Close to 90% (86%) expect transparency of the source of raw materials to become a significant driver of mining company value.

In key areas of the value chain, miners are faced with distinct choices of which technology to invest in (eg what type of battery storage technology, swap versus fast charging, etc). Of the survey respondents:

  • 60% believe miners should begin transitioning to an all-electric system with installing renewables. Electrical infrastructure was second with 37%, with heavy mobile equipment third with 32%;
  • 87% expect solar will become the most widely used energy source in the industry in the next 15 years, followed by gas, wind and diesel (58%, 44% and 39%, respectively);
  • 76% expect remote mine sites will use batteries to supplement renewables, followed by diesel with 53% and demand management at 42%;
  • There is no consensus as to which energy source will power heavy mobile equipment between lithium batteries, hybrids and diesel (28%, 21% and 18% respectively); and
  • 54% expect infrastructure to be the main challenge for transitioning mine sites to electric.

Of these stats above, the lack of consensus as to which energy source will power heavy mobile equipment is as enlightening as it is expected.

Battery-electric technology has matured to the point where one would expect it to dominate in the underground space, followed closely by fuel cell power, hybrids and some form of trolley, but it is a lot harder to predict the winner in the open-pit mining space, with major miners pursuing different developments related to hydrogen, batteries, trolley assist and alternative fuels.

“The mass adoption of electrification technology and storage systems to power mine sites has so far been slow,” the report stated. “It is clear that as an industry, this knowledge gap will need to be confronted largely through testing and piloting, which allows for the development of case studies for application, economic models and best practice guidelines.”

Of survey respondents:

  • 88% see cost as being the major risk of electrifying a mine site;
  • 63% report that risk aversion is holding back the implementation of electrification technologies;
  • 18% are willing to accept increased risk in asset design to increase financial returns; and
  • 41% are primarily focusing their innovation efforts on energy.

The report authors say the industry should focus on collaborating to overcome the barriers that are beyond the capacity of any one individual company to address, with such efforts requiring the mobilisation of policy makers, miners, service companies, investors and researchers in order to achieve the scale, capital and influence to drive success.

Of survey respondents:

  • The preferred partnering approach for achieving breakthrough innovations is collaborating with selected partners (65%);
  • The majority believe the best way the government can support innovation is through regulation and collaboration (#1 and #2, respectively);
  • 85% believe broad industry standards for battery types are required.
  • 52% see miners as the biggest group driving investment in electrification followed by suppliers and investors (39% and 38%, respectively); and
  • 60% believe the industry should focus its health risk innovation on airborne particulates.

Australian government backs mining and metal sector decarbonising initiative

A new Cooperative Research Centre focused on integrating green energy sources such as hydrogen, ammonia and solar into high-heat and high-emission manufacturing processes for products like steel, aluminium and cement has won Australia government backing.

The Heavy Industry Low-carbon Transition Cooperative Research Centre (HILT CRC), to be led by the University of Adelaide, has been provided with A$39 million ($29 million) of funding through the CRC Grants program. It is also backed by an additional A$175.7 million in funding and in-kind support from research and industry partners such as Alcoa, Rio Tinto Aluminium, South32, Roy Hill, Fortescue Metals Group, the Australian National University and the CSIRO.

South Australia Minister for Industry, Science and Technology, Christian Porter, said the CRC would help to secure the future of heavy industries right across the country by helping them to lower costs and establish a reputation as exporters of high-quality, low-carbon, value-added products.

“In order to remain internationally competitive, it is crucial that our heavy industries begin the transition to lower cost and cleaner energy technology to secure the long-term future of their operations,” Minister Porter said. “By connecting those industries with our best and brightest minds from within our major research institutions – coupled with the significant funding that’s now available to fast-track this work – we expect real-world solutions can be delivered within the 10-year life of the CRC.”

Dr David Cochrane, who is Technology Lead at core CRC partner South32 and also an industry leader of the HILT CRC, said: “The HILT CRC will play an important role in transitioning to a low-carbon future by creating a framework for industry to collaborate, sharing knowledge and experience while lowering the risk of trialling technology.

“For South32, we have recently set medium-term targets to halve our operational emissions by 2035 as we transition to net zero by 2050 and initiatives like the HILT CRC are part of our plan to achieve these targets.”

Susan Jeanes, who is Chair-elect of the HILT CRC, said: “Decarbonising Australia’s heavy industry will position it to be competitive in the rapidly developing, global low carbon markets for green iron and aluminium products that have higher value than our current exports. These new markets are being driven by our trading partners in countries like China, Japan and Europe, which are introducing a range of financial measures to meet their carbon targets, such as EU’s Carbon Border Tax.

“Our mineral resources geographically co-exist around the continent with our first-class renewable energy resources making decarbonising more competitive here than in other parts of the world.”

Blue Energy investigates potential to power Isaac Plains fleet on hydrogen

Blue Energy Ltd says it has executed a non-binding memorandum of understanding (MoU) with Stanmore Resources Ltd that could see mine gas converted to hydrogen to power Stanmore’s Isaac Plains Complex equipment fleet.

The latest MoU relates to future pilot production activities at Stanmore’s ATP 814 tenement in the Bowen Basin of Queensland, Australia, but it builds on a previously announced non-binding MoU for the commercialisation of mine gas from Stanmore’s proposed underground operation adjacent to ATP814.

The gas used by Blue for conversion to hydrogen will be pilot gas which would otherwise be flared, and this trial project will reduce greenhouse gas emissions from Blue’s activities and also reduce diesel fuel usage by Stanmore which, in turn, reduces the CO2 produced by the combustion cycle of their fleet of vehicles, Blue said. The company is currently investigating off-the-shelf modular hydrogen generation equipment that is portable and able to be installed either centrally or at the well head, with the hydrogen generated transported in purpose-built cylinders to Stanmore’s Isaac Plains Complex site for use in their vehicle fleet.

Blue Energy’s Managing Director, John Phillips, said: “Being able to avoid flaring of pilot gas production by converting it to hydrogen is a step forward in reducing emissions prior to gas developments, and, in this case, has the added bonus of also lowering emissions from neighbouring mining operations.”

Blue is in the process of establishing technology partners for this hydrogen trial and, now with a foundation hydrogen offtaker secured, is confident the use of blue hydrogen from its pre-development activities is a positive step toward lowering the greenhouse gas emission footprint of the Bowen Basin coal mining precinct.

Howden to supply hydrogen compressor solutions for Nel’s electrolysers

Global provider of air and gas handling products, technologies and services, Howden, has signed a framework agreement with Nel Hydrogen Electrolyser, a division of Nel ASA, to supply hydrogen compressor solutions for its electrolysers.

The reliability, efficiency and safety delivered by Howden’s compression solution matches Nel’s electrolysers’ requirements, relative to hydrogen production, and is an important step towards achieving Nel’s cost target of green hydrogen production at $1.5/kg, Howden said. The two companies will work closely together to develop cost competitive hydrogen compressor systems for Nel’s electrolysers.

Ross Shuster, Howden CEO, said: “We are delighted to enter into this agreement with Nel as it illustrates achievements already made in integrating Howden’s hydrogen compression solution with Nel’s electrolysers to lower the life-cycle cost of production and accelerate the adoption of hydrogen as a zero-carbon fuel.”

Howden says it has extensive capabilities in developing and delivering state-of-art hydrogen compression solutions. In fact, it was recently selected by SSAB, LKAB and Vattenfall to deliver a hydrogen storage compression solution for HYBRIT, the world’s first fossil-free steel plant, in Svartöberget, Sweden.

Jon André Løkke, Nel CEO, said: “We are pleased to enter into this framework agreement with Howden, which ties into the ambitions we announced at our Capital Markets Day and reiterated in our Q1 (March quarter) 2021 report around forming strategic partnerships. Working with Howden allows us to optimise our offerings towards existing and future customers.”

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.”

Howden to deliver hydrogen storage compression solution for HYBRIT

Howden says it has been selected to deliver a hydrogen storage compression solution for HYBRIT, the world’s first fossil-free steel plant, in Svartöberget, Sweden.

A joint project between Sweden’s SSAB, LKAB and Vattenfall, HYBRIT is the deployment of a unique pilot project for large-scale hydrogen storage. This initiative leads the development of the world’s first fossil-free value chain for the iron and steel industry, to address renewable hydrogen storage.

Howden has been contracted to supply a high-pressure diaphragm compression package to seamlessly integrate the storage cycle of the hydrogen production. The hydrogen compression includes installation and commissioning of a packaged three stage diaphragm compressor.

The storage facility consists of a 100 cu.m hydrogen storage built in an enclosed rock cavern approximately 30 m below ground. This offers a cost-effective solution, with the necessary pressure required, to store large amounts of energy in the form of hydrogen, Howden said.

The reliability, efficiency and safety delivered by Howden’s compression solution matches with the large-scale hydrogen storage requirements, relative to the storage conditions and the evaluation of the amount of time during which the compression pressure remains at the desired level, it added.

HYBRIT supports the European Union’s Hydrogen Strategy and its ambition to install at least 6 GW of renewable hydrogen electrolysers in the EU by 2024 and at least 40 GW by 2030.

Salah Mahdy, Global Director – Hydrogen at Howden, said: “Our partnership with HYBRIT demonstrates Howden’s capabilities in developing and delivering state-of-art hydrogen compressor solutions, based on our long-standing compression expertise. We have over 100 years of experience in the compression of hydrogen, which is ideally placed to support the transition to a fossil-free energy system.

“We’re thrilled to be working on this ground-breaking project, which has the potential to reduce Sweden’s total carbon dioxide emissions by at least 10%. The steel industry currently accounts for about 7% of the world’s global carbon emissions, so the creation of a zero-emission steel is revolutionary, and may, in the future, help to reduce emissions from iron and steel production worldwide.”

Mikael Nordlander, Head of R&D Portfolio Industry Decarbonisation, Vattenfall, adds: “Fossil-free hydrogen is central to the HYBRIT process. Hydrogen can be produced cost-effectively through the electrolysis of water using fossil-free electricity. The hydrogen produced by the electrolysers can be used immediately or stored for later use. One of the key aspects of our storage facility relies on the hydrogen compression to be deployed in a contamination-free manner. Based on their proven technology, expertise and references, we are delighted to cooperate with Howden on the integration of a reliable compression solution for storage.”

Howden says it is focused on helping customers increase the efficiency and effectiveness of their air and gas handling processes enabling them to make sustainable improvements in their environmental impact. It designs, manufactures and supplies products, solutions and services to customers around the world across highly diversified end-markets and geographies.

CSIRO on a mission to help Australia become a hydrogen power leader

A new Hydrogen Industry Mission launched by CSIRO will, Australia’s national science agency says, help support the world’s transition to clean energy, create new jobs and boost the economy.

Hydrogen, when mixed with oxygen, can be used as an emissions-free fuel source to generate electricity, power or heat. But it is expensive to turn into a fuel.

The research mission will help drive down the cost of hydrogen production to under A$2 per kilogram, making the fuel more affordable and helping to position Australia to lead the world in exporting hydrogen by 2030.

Over the next five years, more than 100 projects worth A$68 million ($53 million) have been planned by partners including: Department of Industry, Science, Energy and Resources (DISER), Australian Renewable Energy Agency (ARENA), Fortescue Metals Group, Swinburne University, the Victorian Government, the Future Fuels CRC, National Energy Resources Australia (NERA), and the Australian Hydrogen Council, along with collaborators Toyota and Hyundai. CSIRO and Boeing – research partners for more than 30 years – will also continue to explore hydrogen’s future use in the aviation industry.

CSIRO Chief Executive, Dr Larry Marshall, said the unique mission-based partnership was the key to creating a new industry for the future energy needs of Australia and the world.

“Australia can become a renewable energy leader through the production, use and export of hydrogen, but it will only become a reality if we breakthrough the A$2/kg barrier,” he said. “That needs Australia’s world class science working with CSIRO’s commercialisation expertise turning breakthrough science into real-world solutions.

“Taking a Team Australia approach is essential to creating the 8,000 jobs and A$11 billion a year in GDP that hydrogen can contribute to Australia’s economy as we build back better from the impacts of COVID-19.”

CEO of the Australian Hydrogen Council, Dr Fiona Simon, said the mission came at a critical time for the emerging Australian hydrogen industry.

“We need a coordinated series of investments in industrial-scale research and demonstration activities, along with the supporting research and infrastructure that can bring the technologies that are available and emerging to the industry that needs to deploy them,” she said.

“Focused efforts like the Hydrogen Industry Mission will help realise these goals, and the Hydrogen Council is delighted to be part of it.”

The mission will focus on delivering four key programs of work, some of which have already begun:

  • Hydrogen Knowledge Centre to capture and promote hydrogen projects and industry developments across Australia. The first module, HyResource, was launched in September with NERA, the Future Fuels CRC and The Australian Hydrogen Council;
  • Feasibility and strategy studies to deliver trusted advice to government, industry and the community. This builds on recent hydrogen cost modelling and barrier analysis provided as part of developing the National Hydrogen Strategy;
  • Demonstration projects that validate hydrogen value chains and de-risk enabling technologies. Development is underway at a new facility in Clayton, Victoria, with Swinburne University and the Victorian Government; and
  • Enabling science and technology through investment in breakthrough science, including a A$20 million partnership with Fortescue which focuses on the development and commercialisation of new hydrogen technologies.

CSIRO Hydrogen Industry Mission Lead, Dr Patrick Hartley, said CSIRO was uniquely placed to drive this collaboration.

“The goal of this mission is to support the vision of a clean and competitive hydrogen industry for Australia by delivering research, development and demonstration partnerships which help make Australia’s hydrogen markets a reality,” he said.

“CSIRO’s unique position at the nexus of research, government, and industry gives us the ability to bring together stakeholders, and our track record of partnering and leveraging research funds means that we are able to grow this new phase of the industry without the need for everyone to do it alone.”

Nel and Wood to collaborate on large scale, renewable hydrogen projects

Nel ASA has entered into a framework agreement with the global consulting and engineering company Wood that will see the companies collaborate to develop and execute large scale, complex green renewable hydrogen projects in select regions across the world.

Wood is a leader in consulting and engineering across various industries including mining. Nel, meanwhile, is a global, dedicated hydrogen company, delivering solutions to produce, store, and distribute hydrogen from renewable energy.

Jon André Løkke, CEO of Nel ASA, said: “We are very excited to be entering into this agreement with Wood, who has extensive experience from large, complex projects worldwide. As green hydrogen projects are growing in size and complexity, it is crucial for our success to have strong partners to strengthen our project management – and execution capabilities. This is a long-term commitment, and we look forward to working together to further strengthen our competitiveness through leveraging our experience and competence.”

Nel Hydrogen Electrolyser AS, a subsidiary of Nel ASA, is delivering a 3.5 MW electrolyser to ENGIE as part of a project to deliver the world’s largest fuel cell haul truck for Anglo American.

Craig Shanaghey, Wood’s President of Operations for Europe, Middle East and Africa, said: “We are excited about the opportunity to support NEL Hydrogen as they play their part in the green hydrogen revolution, and as we unite on our commitment to create a more sustainable and cleaner energy future. We look forward to leveraging our global engineering and project implementation capabilities to support our client on their delivery of impactful solutions around the world.”

The process of phasing in Wood on ongoing projects is underway, Nel said.

HYBRIT partners start building underground fossil-free hydrogen storage facility in Luleå

SSAB, LKAB and Vattenfall have commenced building a rock cavern storage facility for fossil-free hydrogen gas on a pilot scale next to the HYBRIT pilot facility for direct reduced iron in Luleå, northern Sweden.

This is an important step in the development of a fossil-free value chain for fossil-free steel, the companies said, with the investment of just over SEK250 million ($29 million) divided equally across the holding companies and the Swedish Energy Agency, which provides support via Industriklivet.

As part of the SSAB, LKAB and Vattenfall joint HYBRIT initiative, Hybrit Development AB is starting the construction of a hydrogen storage facility in Svartöberget to develop the technology for storage.

Fossil-free hydrogen, which will replace coal and coke, is a crucial part of the production technique for fossil-free iron and steel production, where emissions of carbon dioxide will be virtually eliminated, the companies said. Hydrogen can be produced cost effectively through the electrolysis of water using fossil-free electricity. The hydrogen produced by the electrolysers can be used immediately or stored for later use.

Hydrogen storage is predicted to play a very important role in future power and energy balancing, and in large-scale hydrogen production, according to the companies. The storage facility is expected to be operational from 2022-2024.

Andreas Regnell, Head of Strategy at Vattenfall and Chairman of the Board at HYBRIT, said: “We’re really pleased that HYBRIT is continuing to lead the development of efficient production for fossil-free steel, as we’re now also building a pilot storage facility for large-scale fossil-free hydrogen in Luleå.

“Storage provides the opportunity to vary demand for electricity and stabilise the energy system by producing hydrogen when there’s a lot of electricity, for example in windy conditions, and to use stored hydrogen when the electricity system is under strain.”

Martin Pei, Technical Director of SSAB and Board member of HYBRIT, said: “By developing a method for hydrogen storage and securing access to fossil-free electricity, we’re creating a value chain all the way out to customers where everything is fossil-free – from the mine to the electricity and to the finished steel. This is unique.”

The 100 cu.m hydrogen storage is being built in an enclosed rock cavern around 30 m below ground. Building the storage facility underground provides opportunities to ensure the pressure required to store large amounts of energy in the form of hydrogen in a cost-effective way, the companies said.

The technology used is adapted to Scandinavian bedrock conditions and will be further developed to handle the storage of hydrogen.

The storage facility is based on proven technology and the hydrogen is used in the plant’s direct reduction reactor to remove oxygen from iron ore pellets, the companies said. The fossil-free sponge iron resulting from the process is then used as a raw material in the manufacture of fossil-free steel.

Industrialisation of fossil-free steel under the HYBRIT initiative is intended to start with the first demonstration plant, which will be ready in 2026, for the production of 1.3 Mt of fossil-free sponge iron in Gällivare, Sweden. The goal is to expand sponge iron production to a full industrial scale of 2.7 Mt/y by 2030 to be able to supply SSAB, among others, with feedstock for fossil-free steel.

HYBRIT partners choose Gällivare for fossil-free sponge iron demonstration plant

SSAB, LKAB and Vattenfall say they are taking a new, decisive leap forward in their work on HYBRIT, with the trio selecting Gällivare, in northern Sweden, as the location of the first production plant for its fossil-free sponge iron exercise.

Industrialisation is intended to start with the first demonstration plant, which will be ready in 2026, for the production of 1.3 Mt 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 Mt by 2030 to be able to supply SSAB, among others, with feedstock for fossil-free steel. The choice of Gällivare for the demo 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, the companies said.

There are many advantages to locating the new sponge iron plant in Gällivare, which is also near LKAB’s mining production and processing plants. Using iron ore pellets that are already warm in the process will save huge amounts of energy, according to the companies. 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.

Martin Lindqvist, President and CEO at SSAB (centre), said: “We are world leaders in the work to transform the steel industry and are now stepping up the pace. We are doing this for the climate, customers, competitiveness and for employment. That we are now raising ambitions for a completely fossil-free value chain is unique and a message of strength from SSAB and our HYBRIT partners. We are seeing a clear increase in demand for fossil-free steel and it is right to speed up our ground-breaking cooperation.”

Jan Moström, President and CEO at LKAB (left), said the companies are leading the transformation of the iron and steel industry.

“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,” he said. “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 Mt a year, which is equivalent to triple the effect of parking all passenger cars in Sweden for good.”

At the same time as announcing the Gällivare demo plant, SSAB and LKAB have agreed to deepen their partnership to create the “most effective fossil-free steel value chain from mine to steel, to customer”, they said.

“We will support and enable each other’s transformation, with Vattenfall an enabler of the huge need for electricity and hydrogen gas,” they said. “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 its Oxelösund steel works in 2025 remains unchanged, as does its goal to be the first to market, in 2026, with fossil-free steel, SSAB clarified.

Anna Borg (right), President and CEO at Vattenfall, added: “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 ground-breaking 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.”

Hybrit Development AB, which is owned by SSAB, LKAB and Vattenfall, is developing the technology to make steel using hydrogen gas instead of coal, which will minimise climate harmful carbon dioxide emissions from production. The HYBRIT pilot plant will be able to make fossil-free sponge iron to make fossil-free steel for prototypes to customers already in 2021.

The partners claim the initiative has the potential to reduce carbon dioxide emissions by 10% in Sweden and 7% in Finland, as well as contribute to cutting steel industry emissions in Europe and globally.