SSAB and Fortum Collaborate on FEED Study for Fossil-Free Sponge Iron Production in Finland

SSAB and Fortum Collaborate on FEED Study for Fossil-Free Sponge Iron Production in Finland

(IN BRIEF) Steel manufacturer SSAB and energy company Fortum are collaborating on a FEED (Front-End Engineering Design) study to investigate the potential for producing hydrogen-reduced sponge iron on an industrial scale in Raahe, Finland. This initiative is an extension of their ongoing joint research project focused on fossil-free steel. SSAB aims to transform its Nordic strip production to be largely carbon dioxide-free by 2030, and the FEED study will contribute to this goal. The study is expected to be completed by early 2024. SSAB recently introduced carbon dioxide-free steel, and the planned conversion of their Oxelösund mill will enable the production of steel without carbon dioxide emissions by utilizing a mix of fossil-free sponge iron and scrap as raw materials. The collaboration between SSAB and Fortum highlights their commitment to sustainable steel production and carbon neutrality.

(PRESS RELEASE) STOCKHOLM, 5-Jun-2023 — /EuropaWire/ — SSAB (STO: SSAB-A), a Nordic and US-based steel company, and Fortum are joining forces to conduct a Front-End Engineering Design (FEED*) study aimed at exploring the feasibility of producing hydrogen-reduced sponge iron on an industrial scale in Raahe. This initiative serves as a natural progression from their ongoing joint research project, FFS – Towards Fossil-free Steel, which commenced in February 2021 with support from Business Finland. The FEED study is projected to conclude in the first quarter of 2024.

The study aims to assess the potential for manufacturing fossil-free sponge iron and constructing a hydrogen production plant in Raahe. This aligns with SSAB’s strategic decision, made by the Board of Directors in January 2022, to transition its Nordic strip production to be predominantly carbon dioxide-free by around 2030. In 2022, SSAB successfully produced and delivered 500 tonnes of fossil-free steel.

An important milestone was reached in March 2023 when SSAB introduced SSAB Zero, a carbon dioxide-free steel derived from recycled scrap and produced using fossil-free energy. The planned conversion of the Oxelösund mill will enable SSAB to utilize a flexible combination of fossil-free sponge iron and scrap as raw materials for steel production, eliminating carbon dioxide emissions. This transformation is set to commence in the fourth quarter of 2026.

The collaboration between SSAB and Fortum underscores their commitment to advancing sustainable steel production and achieving carbon neutrality. By exploring the possibilities of hydrogen-reduced sponge iron production in Raahe, the partners aim to further enhance their fossil-free steelmaking capabilities.

*FEED = Front-End Engineering Design, is an engineering design approach used to control project expenses and thoroughly plan a project before a fixed bid quote is submitted.

For further information, please contact:
Viktoria Karsberg, VP Head of Corporate Identity and Group Communications, +46 72 233 5288
Hanna Hoikkala, press officer SSAB, hanna.hoikkala@ssab.com, +46 73 655 1117

SOURCE: SSAB