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LKAB-HYBRIT

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

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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.

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.

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.”

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

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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.

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

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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

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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.

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

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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

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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.

LKAB plots carbon-free pathway with direct reduced iron switch

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LKAB has presented its new strategy for the future, setting out a path to achieve net-zero carbon emissions from its own processes and products by 2045, while securing the company’s operations with expanded mining beyond 2060.

Jan Moström, President and CEO of LKAB, said the plan represented the biggest transformation in the company’s 130-year history, and could end up being the largest industrial investment ever made in Sweden.

“It creates unique opportunities to reduce the world’s carbon emissions and for Swedish industry to take the lead in a necessary global transformation,” he said.

The strategy sets out three main tracks for the transformation:

  • New world standard for mining;
  • Sponge iron (direct reduced iron) produced using green hydrogen will in time replace iron ore pellets, opening the way for a fossil-free iron and steel industry; and
  • Extract critical minerals from mine waste: using fossil-free technology to extract strategically important earth elements and phosphorous for mineral fertiliser from today’s mine waste.

The transformation is expected to require extensive investments in the order of SEK10-20 billion ($1.2-2.3 billion) a year over a period of around 15 to 20 years within LKAB’s operations alone. The company said the new strategy was a response to market developments in the global iron and steel industry, “which is undergoing a technology shift”.

The move could cut annual carbon dioxide emissions from the company’s customers worldwide by 35 Mt, equivalent to two thirds of Sweden’s domestic greenhouse gas emissions, it said.

Developments under the HYBRIT project, in which SSAB, LKAB and Vattenfall are collaborating on a process to enable the reduction of steel from iron ore using hydrogen instead of carbon, will be keenly observed following the miner’s announcement.

On top of this collaboration, LKAB is working with Sandvik, ABB, Combitec, Epiroc and several other industry leaders to develop the technology that will enable the transition to fossil-free, autonomous mines, it said.

Moström added: “The market for iron and steel will grow and, at the same time, the global economy is shifting towards a carbon-free future. Our carbon-free products will play an important part in the production of railways, wind farms, electric vehicles and industrial machinery.

“We will go from being part of the problem to being an important part of the solution.”

The market for steel is forecasted to grow by 50% by 2050. This growth will be achieved by an increase in the upgrading of recycled scrap in electric arc furnaces, according to LKAB. Today, the iron and steel industry accounts for more than a quarter of industrial emissions and for 7% of the world’s total carbon dioxide in the atmosphere, according to an IEA report.

The company said: “The global market price for recycled scrap is now twice that of iron ore pellets. The carbon-free sponge iron that will in time replace iron ore pellets as LKAB’s main export product is suitable for arc furnaces, allowing the company to offer industries throughout the world access to carbon-free iron.”

Moström said the switch from iron ore pellets to carbon-free sponge iron was an important step forward in the value chain, increasing the value of its products at the same time as giving customers direct access to “carbon-free iron”.

“That’s good for the climate and good for our business,” he said. “This transformation will provide us with good opportunities to more than double our turnover by 2045.”

During the transformation period, LKAB will supply iron ore pellets in parallel with developing carbon-free sponge iron.

To reach the new strategy’s goals, rapid solutions must be found for various complex issues, according to the company. These include permits, energy requirements and better conditions for research, development and innovation within primary industry.

Moström said: “Our transformation will dramatically improve Europe’s ability to achieve its climate goals. By reducing emissions primarily from our export business, we will achieve a reduction in global emissions that is equivalent to two-thirds of all Sweden’s carbon emissions. That’s three times greater than the effect of abandoning all cars in Sweden for good.

“It’s the biggest thing we in Sweden can do for the climate.”

Göran Persson, Chairman of the Board of LKAB, said: “What Swedish industry is now doing, spearheaded by LKAB, is to respond to the threatening climate crisis with innovation and technological change. In doing so, we are helping to secure a future for coming generations. This will also create new jobs in the county of Norrbotten, which will become a hub in a green industrial transformation. Succeeding in this will create ripples for generations to come. Not just here, but far beyond our borders.

“Now we are doing, what everyone says must be done.”