Green Steel Value Chain

In 2016, the Swedish industries SSAB, LKAB and Vattenfall launched the HYBRIT initiative to decarbonise steelmaking by replacing coking coal with hydrogen for ore-based steel production. The initiative aims to produce steel without using fossil fuels, thereby reducing Sweden's CO2 emissions 10% by 2026. Finland joined the consortium in 2018, aiming to reduce its own CO2 emissions 7%.

In this effort to create the world's first entirely fossil-free value chain (from mine to steel), the pilot Luleå facility was commissioned in 2020 to test using renewable hydrogen to produce sponge iron for steel.

Construction on a hydrogen storage facility started in May 2021, and SSAB produced its first fossil-free steel in August. At full capacity, the 100 GWh storage facility will be able to power a full-size steel mill for three to four days. The project required SEK 200 million (USD 22.1 million) in investment as well as SEK 52 million (USD 5.7 million) in support from the Swedish Energy Agency to build the storage facility.

In 2021, the town of Gällivare was selected as the site for a demonstration facility for industrial-scale steel production. In addition, innovation in green steel has continued along the value chain, with Volvo Group producing a first-of-its-kind vehicle using SSAB's green steel, and steel manufacturer Ovako developing a hydrogen filling station that will use surplus hydrogen to power Volvo's next-generation trucks.

Source: See endnote 244 for chapter 01.

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