The project will support the accelerated transition to an electric steel mill having a capacity of 2.5 million tonnes of green slabs per year through the installation of an electric arc furnace, which will produce direct reduced iron using steel scrap and renewable hydrogen.
Oct 22, 2024
The European Commission has approved an aid of EUR 128 million from Sweden to support the decarbonization of domestic steel producer SSAB.
As per the Commission, the measure will contribute to the European green deal and the industrial plan targets, while also helping to end dependence on Russian fossil fuels and accelerating the green transition.
SSAB plans to transition from the current coal-based steel production process in Luleå to a nearly zero-emission system through the Just Transition Fund.
The direct grant will support the accelerated transition to an electric steel mill having capacity of 2.5 million tonnes of green slabs per year through the installation of an electric arc furnace, equipment for secondary metallurgy and a caster. The electric arc furnace will operate using steel scrap and produce direct reduced iron using renewable hydrogen.
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The measure will significantly reduce CO2 emissions corresponding to three years of operation using fossil fuels. The new installation is likely to commence green steel production in 2029.
