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LKAB-HYBRIT

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

Environmental, Steel and iron ore, Sustainable mining, , , , , , , , , , ,

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

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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.

Epiroc to use SSAB’s new fossil carbon emission-free recycled steel for BEVs

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Epiroc has become the first company in the mining industry to sign a delivery agreement with Swedish steelmaker SSAB for SSAB Zero™, a product made of recycled steel and produced with fossil-free electricity and biogas.

The steel will be used in Epiroc’s battery-electric range of underground mine trucks and loaders, set to be introduced as soon as the September quarter of 2023.

Sami Niiranen, President of Epiroc’s Underground division, said: “We are very excited to utilise SSAB’s pioneering low-carbon solutions. This is one of many ways that we are accelerating the transformation of the mining industry – while also helping our customers to reach their sustainability goals.”

SSAB Zero will be used in the production of Epiroc’s Smart and Green series of battery-electric mine trucks and loaders, enabling, it says, zero-emission underground operations. The partnership with SSAB is part of Epiroc’s long-term commitment to produce the world’s greenest machines and to halve CO2e emissions by 50% by 2030 compared with 2019, as well as SSAB’s aim to help create fossil-free value chains.

Thomas Hörnfeldt, Head of Sustainable Business at SSAB, said: “SSAB Zero broadens our zero emission portfolio and strengthens the business offering, allowing us to bring zero-emission steel to our customers already this year,. There is a large demand for this kind of steel; it is satisfying to have such an offer in place.”

Epiroc has now signed a delivery agreement for both of SSAB’s zero-emission steel types: SSAB Zero, based on recycled steel, and SSAB Fossil-free™, based on iron ore without fossil fuels. At the end of 2022, Epiroc showcased the world’s first underground mine truck made using fossil-free steel from SSAB, which is set to be available on a commercial scale during 2026.

SSAB Zero has zero fossil carbon emission (less than 0.05 kg CO2e emissions per kg steel in Scope 1 and 2 calculations) in operations, including purchased energy and transportation. The quality and properties of SSAB Zero will be equal to the steel currently used in Epiroc’s products, Epiroc says.

SSAB to showcase benefits of Strenx steel at CONEXPO-CON/AGG 2023

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SSAB, a global leader in high-strength steel production, will be featurung Strenx® performance steel and the benefits it brings to construction equipment at the upcoming CONEXPO-CON/AGG 2023 event in Las Vegas, next week.

Strenx is a high-strength structural steel that, SSAB says, successfully helps manufacturers around the world build stronger, lighter and more sustainable equipment. Its uses range from lifting and land clearing to earthmoving, material handling, hauling and trucking.

As a steel with high yield strength, Strenx has proven successful in lifting equipment, bringing more power, reach and flexibility to the job site. It is designed to work under high load stresses without compromising on safety or causing equipment failure, providing maximum strength, lift height and lift capacity at less weight.

Strenx high-strength steel plate, tubes and hollow sections in reduced thicknesses can benefit cranes, hoists, spider lifts, scissor lifts, boom lifts, cherry pickers, telehandlers and more, according to the company. Thanks to its tight thickness and flatness tolerances, Strenx steel enables fabricators to accurately bend the components needed.

Strenx is made in a steelmaking process that is already the world’s most CO2 efficient, according to the manufacturer. By specifying Strenx in thinner steel gauges, manufacturers can use less steel. Switching to Strenx steel also makes equipment lighter and more efficient in terms of both fuel consumption and CO2 emissions. By 2026, “fossil-free” Strenx will be available from a process that virtually eliminates CO2 emissions, SSAB added.

“Our theme is Think Thinner, Get Stronger,” Magnus Carlsson, Product Manager for Strenx performance steel, said. “We’ll be showcasing our range of steels that can help manufacturers, fleet owners and operators become more productive in challenging environments, and in changing industries that are becoming more focused on sustainability.”

OEMs and steel buyers can purchase Strenx performance steel directly from SSAB. If fabricated components are needed, a new network of Strenx Certified Fabricators has been launched to provide the market with experienced certified specialists in Strenx parts fabrication and services. The G.E. Mathis Company, based in Chicago, is the first certified member of this network.

Strenx is available in yield strengths of 600-1,300 MPa as plate, sheet, tube and hollow section. It is available from local distributors worldwide, and comes with guaranteed properties and tolerances.

CONEXPO-CON/AGG takes place on March 14-18, 2023.

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

Environmental, Mining equipment, Mining services, Power supply for mines, Steel and iron ore, Sustainable mining, , , , , , ,

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.”

Epiroc introduces ‘Smart’ and ‘Green’ series to highlight zero-emission and automation benefits

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Epiroc has ramped up deliveries of battery-electric vehicles and is now seeing strong results from the field in terms of productivity, CO2 reduction and customer satisfaction, it says.

The “Smart and Green” series is the next step to highlight the benefits of zero-emission technology and automation – together with several strong partnerships and initiatives within the sustainability field, according to Epiroc.

This will see the underground battery-electric range rebranded to the Smart and Green series, broadening the fleet to potentially include other zero-emission technologies in the future, the company said. These battery-powered machines come equipped with Epiroc’s Rig Control System, RCS, which makes them ready for smart functionality such as automation and remote control.

“Mining is an essential part of modern society, and crucial in the shift to fossil-free energy sources,” Sarah Hoffman, VP Sales and Marketing at Epiroc’s Underground division, said. “We want to provide the equipment to mine the required metals and minerals in the most sustainable way possible.

“Our ambition is to produce the world’s greenest machines, all the way from cell level to recycling of the batteries. And with smart functionality added, we can help improve safety, productivity, and machine availability even further.”

At the same time, Epiroc is also introducing the Smart series for its diesel-powered range outfitted with RCS. Just like the electric range, the machines are prepared for additional functionality from Epiroc’s 6th Sense offering. The included machine models will feature new decal designs as well as updated product naming.

The batteries of the electric range are produced together with Northvolt, who is committed to building the world’s greenest batteries, Epiroc says.

“Sourcing of materials is done ethically to secure a supply chain free from corruption of people and planet,” it said. “The high energy-density batteries are certified with international standards and features a built-in multi-layer safety system.”

Other sustainability initiatives include Epiroc’s recently announced partnership with Swedish steelmaker SSAB to secure fossil-free steel for use in the production of Epiroc’s mining equipment. The partnership with SSAB fits well with Epiroc’s ambitious sustainability goals for 2030, which includes 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 our customers’ operations where Epiroc equipment is being operated. 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.

By 2025, Epiroc aims to offer a complete range of emission-free underground products.

Schlam to leverage SSAB’s fossil-free steel in future mining products

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SSAB, the leading global Swedish steel company, has entered an agreement with Australia-based mining equipment and engineering services provider, Schlam, that, it says, will revolutionise the steel industry by promoting the increased use of fossil-free steel with a drastically reduced CO2 footprint.

As part of the ambition, both SSAB and Schlam will look to integrate fossil-free steel into their existing products and Schlam will leverage SSAB’s fossil-free steel to bring to market a new generation of sustainable products to reduce its CO2 footprint, SSAB says.

“I’m pleased to announce this collaboration with SSAB,” Matt Thomas, CEO of Schlam Group, said. “It builds on our shared expertise and a determination to drive innovation.”

In addition to the steel products, both organisations recognise the need to cooperate not just in their capacities as industry leaders, but also in the areas of sustainability and CO2 emissions, SSAB says. A common knowledge exchange will be a consistent thread throughout the course of cooperation, as Schlam pushes ahead to make fossil-free end products the new expectation for the Australian mining industry.

Schlam is also a partner of SSAB’s Hardox® In My Body program customer. The program has more than 500 members in 60 countries and members serve a wide range of industries, including mining, construction, quarrying, road building, recycling, demolition and agriculture. The Hardox In My Body sign represents equipment that is manufactured to the highest standards by a qualified Hardox In My Body member. All members have been thoroughly assessed and have earned the right to display this logo as a sign of their commitment.

Matthew Spiteri, Country Manager for Australia and New Zealand at SSAB, said: “We’re proud to welcome Schlam as a partner and look forward to creating more demand for fossil-free steel products in Australia.”

HYBRIT partners inaugurate fossil-free hydrogen gas storage pilot facility

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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.

Volvo Construction Equipment hands over A30G made of fossil-free steel to NCC

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In the latest step on its path toward carbon neutrality, Volvo Construction Equipment (Volvo CE) has become the first manufacturer to deliver a construction machine – a A30G articulated hauler – built using fossil-free steel to a customer.

The move, the company says, demonstrates the fast-tracking of innovation to real-world solutions as companies across the value chain come together to drive change.

The A30G articulated hauler built using fossil-free steel was handed over by President of Volvo CE, Melker Jernberg, to long-standing construction customer NCC on June 1, 2022, at a ceremony hosted by LeadIt – the Leadership Group for Industry Transition – in conjunction with the United Nations environmental meeting Stockholm +50.

The move comes just nine months after the company unveiled the world’s first vehicle concept using fossil-free steel, as part of the testing of the implementation in an ordinary production setup.

That machine, the latest concept unit produced of its TA15 battery electric, cabless and autonomous hauler for use in mining and quarrying, was unveiled at a green steel collaboration event on October 13, 2021, in Gothenburg, hosted by Martin Lundstedt, President and CEO Volvo Group.

While commercial introduction is expected to be gradual with selected customers, this first handover is an important milestone in the group’s ambition to drive industry transformation towards global climate goals, Volvo CE says. The A30G is produced at Volvo CE’s Braås facility in Sweden, using the existing manufacturing process, with fossil-free steel from Swedish steel company SSAB.

While the A30G is a 29 t payload articulated hauler more suited to the construction industry, the fossil-free move to bigger vehicles used in mining is also expected in the future.

Jernberg says: “We are sure that to succeed in decarbonising the construction industry, actors in the value chain will need to collaborate and act. Thanks to our strong partnerships with other driven and forward-thinking companies, we are now able to lead the change towards fossil-free construction and be the first to deliver a machine built using fossil-free steel to a customer. Turning commitments into actions is key to building the world we want to live in.”

Tomas Carlsson, CEO and President of NCC, says: “NCC has a firm commitment to contribute to sustainable development. We are working determinedly and systematically to reach that target, which includes selecting machines that live up to our high demands. As demonstrated in this great example, it takes strong and proactive partnerships between several players to make the sustainable shift possible.”

As part of its Science-Based Targets commitment, Volvo CE plans to achieve net-zero greenhouse gas emissions by 2040. Alongside the electrification of its machines, the company recognises the importance of reducing its carbon footprint across its entire value chain. This includes the raw materials used in its products, of which steel is a major component. The production using fossil-free steel in Volvo CE’s machines and components will be gradual and depend on aspects such as steel availability.

LKAB accelerates carbon-dioxide-free sponge iron plans

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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.”