Fortum and SSAB have concluded their joint study exploring the production of hydrogen-reduced fossil-free sponge iron in Raahe, Finland.
The collaboration, initiated in June, kicked off with high hopes. The project was two-fold, comprising a commercial feasibility study and a technical FEED (front-end engineering design) study. The primary objective was to investigate the viability of producing sponge iron, a key ingredient in steel production, using hydrogen reduction. The potential benefits were significant, including a reduction in carbon emissions and the transition to a more sustainable steel-making process.
However, as of late October, Fortum and SSAB jointly declared that they were unable to find a commercial arrangement that would be mutually beneficial under the existing conditions. While the decision might seem like a setback, it’s important to recognize that such endeavors in the clean energy sector often involve complex technological, logistical, and economic challenges.
Despite this setback, Fortum remains committed to the broader goal of advancing hydrogen technologies and exploring their potential in various sectors. Their strategic approach includes collaborating with customers and partners in areas such as pulp and paper, chemicals, and transportation. In these domains, Fortum is actively engaged in multiple Power-to-X studies and research projects.
Power-to-X technologies represent an exciting avenue in the realm of sustainable energy. These technologies offer a means of storing and converting energy into diverse products, ranging from hydrogen and synthetic fuels to chemicals. The ultimate aim is to decarbonize industrial processes and the transportation sector, reducing their environmental footprint.