Tag Archives: Martin Pei

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.

SSAB, LKAB and Vattenfall plot HYBRIT pilot production pathway

SSAB, LKAB and Vattenfall are taking another important step in their fossil-free steelmaking journey with preparations now underway for the construction of a demonstration plant on an industrial scale for its HYBRIT initiative.

The companies have also started consultations for deciding on placement of this demo plant in Norrbotten, Sweden.

The objective of the joint venture HYBRIT project is to develop the world’s first fossil-free, ore-based steelmaking process. The by-product of using fossil-free electricity and hydrogen in steelmaking, instead of coke and coal, will be water, instead of carbon dioxide. The partners believe the initiative has the potential to reduce Sweden’s total carbon dioxide emissions by 10%, hence the reason the Swedish Energy Agency has granted financial support for the project.

The plan is for construction of the demonstration plant to start in 2023, with the goal of taking the plant into operation in 2025.

“The intention is to be able to demonstrate full-scale production with a capacity of just over 1 Mt/y of iron per year, ie 20% of LKAB’s total processing capacity at Malmberget and almost half of the production capacity of SSAB’s blast furnace in Luleå,” the company said. “The goal is to be first in the world to produce fossil-free steel as early as 2026.”

HYBRIT is now starting an investigation into the selection of a location for the demonstration plant. Parallel consultations are being launched at two sites in Sweden: the Vitåfors industrial estate in Gällivare Municipality, where LKAB has mining operations, and the Svartön industrial estate in Luleå, where facilities including SSAB’s steel mill and LKAB’s ore port are located.

“The purpose is to consult and conduct an open dialogue about the location and design of the plant ahead of the upcoming selection of the site and permit application,” the companies said. “Consultation with government agencies, organisations and the public will begin in June and conclude in September 2020.”

The choice of location will have a major impact on future competitiveness and climate benefits, according to the partners, with investment decisions made once the authorisation procedure and other investigations have been completed.

HYBRIT’s pilot phase will run in parallel with the demonstration phase. In Luleå, the pilot plant for fossil-free steel will be fully constructed during the summer, and preparations are also under way to initiate construction of a temporary hydrogen store to test the technology for storing hydrogen in caverns, the partners said.

Martin Pei, Chief Technical Officer at SSAB and Chairman of HYBRIT, said: “We want to build the plant in Norrbotten. There’s good access to fossil-free electricity and competence here, as well as close collaboration with academia and the community. A demonstration plant for fossil-free iron production would also be positive for growth and jobs in the region, as well as contributing to a major climate benefit.”

Markus Petäjäniemi, Senior Vice President Market and Technology at LKAB, said HYBRIT is an important piece of the “jigsaw puzzle” in a green transition, in which we want to “climate-optimise” the whole chain from mine to finished steel by the year 2045.

“We want Norrbotten to be a world-leading arena for innovation and a centre of knowledge for the global mining and minerals sector,” he added.