Millions for research on climate-neutral steel production

The Swedish Agency for Economic and Regional Growth and the EU Fund for a Just Transition are now providing just over SEK 41 million in support of a research project for the industry's climate transition.

The project Green steel for a fossil-free future is led by the Royal Institute of Technology in Stockholm and Luleå University of Technology. The project will create the conditions for the Norrbotten region to switch to climate-neutral steel production. The project will also study how hydrogen affects parts of the production and the qualities and mechanical properties of steel products.

"The steel industry accounts for huge carbon dioxide emissions but is also an important industry for Sweden's competitiveness. With funding from the Just Transition Fund, we are now enabling important research for the steel industry's climate transition," says Elisabeth Backteman, Director General of the Swedish Agency for Economic and Regional Growth.

Several major projects in the mining and steel industry are ongoing and planned in Norrbotten. LKAB, SSAB and Vattenfall are running Hybrit, which is building a demonstration plant in Gällivare where fossil-free steel will be produced using electricity and hydrogen instead of coal and coke. LKAB will invest in the production of fossil-free sponge iron to be used in the fossil-free steel industry. H2 Green Steel is building a completely new steel plant for fossil-free steel production in Boden. SSAB is planning to build an electric arc furnace and rolling mill in Luleå to replace the blast furnace.

The Just Transition Fund is part of the European Green Deal, the EU's new growth strategy. The fund focuses on industries and regions with very high carbon dioxide emissions and will contribute to the industry's climate transition while maintaining competitiveness.

The program covers about SEK 2.9 billion including national co-financing for climate change adaptation of the steel industry in Norrbotten, the metal industry in Västerbotten and the mineral industry in Gotland County. The money from the fund will be used, among other things, for investments in new climate-smart and resource-efficient technology, skills enhancement for employees, research and reinforcement of electricity networks.

Lennart Håkansson

editor@northswedenbusiness.com