HYBRIT pilot plant produces first sponge iron using fossil-free hydrogen gas

A pilot plant in Lulea, Sweden, has produced the world's first sponge iron reduced using fossil-free hydrogen gas, the company's three shareholders announced June 21. The successful completion of tests proves it is possible to use fossil-free hydrogen gas to reduce iron ore instead of using coal and coke to remove the oxygen, they said.

The HYBRIT project, whose stakeholders are Sweden's specialty steelmaker SSAB, iron ore pellet producer LKAB and power producer Vattenfall, was launched in 2016 with the goal of eliminating CO2 emissions from steelmaking by using only fossil-free feedstock and fossil-free energy in all parts of the value chain.

The pilot plant for the test production of sponge iron started operation in August 2020, receiving support from the Swedish Energy Agency.

Overall, the global steel industry accounts for 7%-8% of total CO2 emissions. The EU aims to become climate neutral by 2050, producing net-zero greenhouse gas emissions, making steel decarbonization in the region a priority. SSAB, LKAB and Vattenfall are pushing through HYBRIT to be the first to market, in 2026, with industrial-scale fossil-free steel, from mine to finished product.

According to a statement from the three companies, HYBRIT's technological breakthrough involves capturing around 90% of emissions in steelmaking. So far, the company has produced around 100 mt of hydrogen-reduced sponge iron, calling this "a decisive step on the road to fossil-free steel."

"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," said Jan Moström, LKAB's president and CEO.

Moström also reiterated a previous statement signalling that once LKAB has converted its entire production to this type of sponge iron, it will be able to reduce global emissions by around 35 million mt/year, corresponding to two thirds of Sweden's entire emissions.

"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," added Martin Lindqvist, President and CEO at SSAB.

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. In May, HYBRIT began work on building a pilot-scale hydrogen storage facility adjacent to the direct reduction pilot plant in Luleå.

"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," said Anna Borg, Vattenfall's president and CEO.

According to the statement, fossil-free iron and steel production using HYBRIT technology will require around 15 TWh of fossil free electricity a year at SSAB's current production levels.

Once completed, the conversion of LKAB's operations will require a total of around 55 TWh a year (including most of SSAB's requirement). This will require faster and more predictable permit processes to expand Sweden's power network and electricity production, the statement said.