SSAB’s Board of Directors have announced plans to build a 'state-of-the-art fossil-free mini-mill' in Luleå, Sweden, which will replace the current blast furnace-based production system when completed.
This will reduce Sweden’s CO2 emissions by 7% in addition to the 3% from the Oxelösund mill conversion, the steelmaker claims.
The new Luleå mill will have a capacity of 2.5 Mt/yr and consist of two electric arc furnaces, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to serve the mobility segment. The new mill will be supplied with a mix of fossil free sponge iron from the Hybrit demonstration plant in Gällivare and recycled scrap.
“The transformation of Luleå is a major step on our journey to fossil-free steel production.''
Martin Lindqvist, SSAB’s president and CEO
''The transformation of Luleå is a major step on our journey to fossil-free steel production. We will remove 7% of Sweden’s carbon dioxide emissions, strengthen our competitive position and safeguard jobs with the most cost-effective and sustainable strip production in Europe,” said SSAB’s president and CEO Martin Lindqvist.
The total mini-mill investment is estimated to reach €4.5 billion including contingencies. The plan is to fund the investment with own cash flows and within SSAB’s financial targets.
Start-up of the new mill is planned at the end of 2028 with full capacity one year later. Environmental permits are expected at the end of 2024.
“Together with our partner LKAB we are making a commitment to eliminate the CO2 emissions from our value chain and establish the new benchmark technology for a fossil-free future.''
Martin Lindqvist, SSAB’s president and CEO
“Together with our partner LKAB we are making a commitment to eliminate the CO2 emissions from our value chain and establish the new benchmark technology for a fossil-free future. In the process we are also safeguarding Nordic industrial competitiveness for decades to come, and supporting the thousands of customers that rely on quality steel from our value chain,” Martin Lindqvist concluded.