Production plant for fossil-free sponge iron to be built in Gällivare

Gällivare SSAB, LKAB and Vattenfall will build the worlds first production plant for fossil-free sponge iron in Gällivare. It is the next step in the joint Hybrit-project.

The demonstration plant will be integrated with iron pellet making and is part of LKAB’s transition plan. Industrialization is intended to start with the first demonstration plant, which will be ready in 2026, for the production of 1.3 million tonnes of fossil-free sponge iron in Gällivare.

The goal is to expand sponge iron production to a full industrial scale of 2.7 million tonnes by 2030 to be able to supply SSAB, among others, with feedstock for fossil-free steel. The choice of Gällivare for establishing of the plant was based on a joint assessment of industrial synergies, where proximity to iron ore, logistics, an electricity supply and energy optimization were important factors.

- Together, we will lead the transformation of the iron and steel industry, and with Hybrit we will now start our historic transformation to be the future supplier of sponge iron. The whole process starts with top quality iron ore in the mine and our transition plan gives strong economies of scale that pave the way for the competitive production of fossil-free steel by our customers, says Jan Moström, President and CEO at LKAB.

A fossil-free steel production in SSABs plants will reduce carbon dioxide emissions by 10 percent in Sweden and 7 percent in Finland, as well as contributing to cutting steel industry emissions in Europe and globally. 

- We are world leaders in the work to transform the steel industry and are now stepping up the pace. We are doing this for the climate, customers, competitiveness and for employment. That we are now raising ambitions for a completely fossil-free value chain is unique and a message of strength from SSAB and our Hybrit partners. We are seeing a clear increase in demand for fossil-free steel and it is right to speed up our groundbreaking cooperation, says Martin Lindqvist, President and CEO at SSAB.

On the back of an acceleration of Hybrit together with LKAB’s strategy and deeper partnership, SSAB will now explore the prerequisites to convert to fossil-free steel production in Luleå faster than planned. The plan to convert Oxelösund in 2025 remains unchanged, as does the companys goal to be the first to market, in 2026, with fossil-free steel.