LKAB, Europe’s largest iron ore company, aims to employ green hydrogen to go carbon-free.

LKAB, a Swedish state-owned company, operates the world’s largest underground iron-ore mine in Kiruna, the Arctic city that produces 80% of the EU’s iron ore. Iron, steel’s basic ingredient, will drive the green industrial revolution. Hydrogen Breakthrough Ironmaking Technology (HYBRIT) will reduce CO2 emissions and make steel production cleaner.

Green hydrogen is made from renewable energy instead of fossil fuels, which is the standard approach. €143 million came from the EU Innovation Fund. The corporation argues the bloc might invest more to beat China and the US.

At least one million tonnes of rare earth metals were identified in Kiruna earlier this month. To dig metals used to make electric vehicles and wind turbines, more money and technology will be needed.

Ebba Busch, Sweden’s Deputy Prime Minister and Minister for Energy, Business, and Industry, says the country’s six-month EU Council Presidency has a solution to deliver the European Green Deal.

The European Commission will unveil its green industrial plan and European Sovereignty Fund next month to boost public investment.