SSAB’s Oxelösund Mill to Lead Fossil-Free Steel Production Following Investment Decision

SSAB’s Oxelösund Mill to Lead Fossil-Free Steel Production Following Investment Decision

(IN BRIEF) SSAB, a leading steel producer, has made an investment decision for the green transformation of its Oxelösund mill in Sweden. This decision marks a significant step towards SSAB’s goal of producing steel without carbon emissions. The investment will enable a 3% reduction in Sweden’s total CO2 emissions and is part of SSAB’s plan to convert its entire Nordic production system to fossil-free steelmaking by 2030. The investment includes a new electric arc furnace and raw material handling infrastructure. Once the conversion is complete, the Oxelösund mill will use a combination of recycled steel and sponge iron as raw materials to produce steel without carbon dioxide emissions. This investment reinforces SSAB’s commitment to a fossil-free future and its leadership in sustainable steel production.

(PRESS RELEASE) STOCKHOLM, 2-Jun-2023 — /EuropaWire/ — SSAB (STO: SSAB-A), a Nordic and US-based steel company, has reached an important milestone in its journey towards fossil-free steelmaking with the investment decision for the green transformation of the Oxelösund mill in Sweden. The investment aims to reduce Sweden’s total CO2 emissions by 3% and marks a significant step towards SSAB’s plan to convert its entire Nordic production system to fossil-free steelmaking by around 2030.

“This investment decision is a very important step on our journey to fossil-free steel production and becoming a fossil-free company. It will have a positive impact both locally and globally and help our customers to reduce their carbon footprint. At the same time we will keep local jobs and improve the surrounding environment,” says Martin Lindqvist, President and CEO of SSAB.

“The investment in Oxelösund will increase our flexibility and earnings and the conversion of the Oxelösund mill will enable us to reduce Sweden’s CO2 emissions by 3%. However, the transformation requires final approval for the necessary power line to Oxelösund,” Martin Lindqvist continues.

To accelerate the transition and maintain momentum, SSAB’s Board has approved a SEK 6.2 billion investment in a new electric arc furnace and raw material handling infrastructure in Oxelösund. This investment will eliminate the need for further investments in existing blast furnaces and coking plants, while increasing capacity for premium products and improving cost efficiency. Additionally, investments will be made in the future power line and restoration costs.

The Oxelösund mill’s conversion will enable the production of steel without carbon emissions by utilizing recycled steel and sponge iron as raw materials. The goal is to commence production of carbon dioxide-free steel in the fourth quarter of 2026. This significant investment decision showcases SSAB’s commitment to a fossil-free future and its leadership in the green transition within the steel industry.

Since 2016, SSAB, in collaboration with LKAB and Vattenfall, has been driving the HYBRIT initiative to develop fossil-free steelmaking technology. The successful opening of a pilot plant for hydrogen-reduced sponge iron in Luleå in August 2020 further demonstrated SSAB’s progress in this area. The company has already produced small batches of fossil-free steel using the sponge iron and delivered them to strategic customers.

In March 2023, SSAB introduced SSAB Zero, a fossil carbon emission-free steel made from recycled steel using fossil-free energy. Once the Oxelösund mill conversion is complete, a flexible mix of fossil-free sponge iron and scrap will serve as the raw material for steel production without carbon dioxide emissions, solidifying SSAB’s position as a frontrunner in the steel industry’s green transition.

SSAB is a Nordic and US-based steel company. SSAB offers value added products and services developed in close cooperation with its customers to create a stronger, lighter and more sustainable world. SSAB has employees in over 50 countries. SSAB has production facilities in Sweden, Finland and the US. SSAB is listed on Nasdaq Stockholm and has a secondary listing on Nasdaq Helsinki. www.ssab.com.