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Nordic JV to develop pilot plant for fossil fuel-free steel production in Sweden

Luossavaara-Kiirunavaara AB, SSAB and Vattenfall AB decided to develop a pilot plant for fossil fuel-free steel production in Sweden, following a successful pre-feasibility study of a steelmaking process that emits water instead of carbon dioxide.

The project will cost 20 million Swedish kronor, half of which will be financed by the Swedish Energy Agency, which previously contributed 60 million kroner to the pre-feasibility study and research.

The Nordic companies are aiming to have a totally fossil fuel-free process for steel production by 2035.

According to the Feb. 1 release, the initiative could reduce Sweden's total carbon dioxide emissions 10% and Finland's by 7%.

The pre-feasibility study estimated that the fossil fuel-free steel, given the current price of electricity, coal and carbon dioxide emissions, would be 20% to 30% more expensive. However, with costs connected to harmful emissions expected to increase, the price for fossil fuel-free steel will become more competitive compared to traditional steel.

SSAB plans to cut its joint carbon dioxide emissions in Sweden by 25% by 2025 by converting the blast furnace in Oxelösund. It also plans to convert the blast furnaces in Luleå in Sweden and Raahe in Finland to become fossil fuel-free by 2045.

"Coal and coke, which are shipped to Sweden from places including Australia, are currently used to reduce iron ore into iron. The idea behind HYBRIT is to use hydrogen, which has been produced with electricity from fossil-free Swedish sources. The emissions would then be normal water," according to the release.

As of Jan. 31, US$1 was equivalent to 7.87 Swedish kronor.