SSAB and Fortum have joined forces to launch a Front-End Engineering Design (FEED) study with the aim of investigating the feasibility of producing hydrogen-reduced sponge iron in Raahe.
This study, scheduled for completion in the first quarter of 2024, will explore the potential for industrial-scale production of fossil-free sponge iron and the construction of a hydrogen production plant. The initiative builds upon the ongoing research project, FFS – Towards Fossil-free Steel, which commenced in February 2021 with the support of Business Finland.
SSAB has been actively pursuing its commitment to transform Nordic strip production into a predominantly carbon dioxide-free process by 2030. In January 2022, the company’s Board of Directors made a policy decision to achieve this ambitious goal. Notably, SSAB has already made significant progress in its journey towards fossil-free steel production. In 2022, the company successfully manufactured and delivered 500 tonnes of fossil-free steel. Furthermore, in March 2023, SSAB introduced SSAB Zero, a carbon dioxide-free steel variant that is produced using recycled scrap and fossil-free energy.
The FEED study in Raahe is a crucial step towards realizing SSAB’s vision of carbon dioxide-free steel production. By integrating a flexible mix of fossil-free sponge iron and scrap as raw materials, SSAB aims to eliminate carbon dioxide emissions in steel production at its Oxelösund mill. This transformation is expected to commence in the fourth quarter of 2026, once the necessary modifications have been made. Hydrogen-reduced sponge iron, produced through a process that utilizes hydrogen as a reducing agent, will play a significant role in achieving this milestone.