LKAB takes over HYBRITs demonstration plant

The demonstration plant at the mining company LKAB's industrial area in Malmberget in Gällivare municipality is the next step in the HYBRIT project, which is run by LKAB, steel producer SSAB and state energy company Vattenfall.

LKAB will now be responsible for the construction of the demonstration plant and will be the recipient of any state aid. The amount of aid applied for has been reduced to SEK 3.7 billion, from the previous amount of SEK 4.9 billion.

The fact that LKAB is taking over is in line with the development of the HYBRIT collaboration, which aims to develop a fossil-free value chain for iron and steel production. LKAB produces sponge iron from fossil-free pellets, Vattenfall produces fossil-free energy and SSAB produces fossil-free steel.

“The development of the HYBRIT technology for iron sponge production on a large scale is central to our transition, for the climate and for Swedish competitiveness. That LKAB becomes the operator and responsible for the construction of the facility is a natural step for the entire value chain. We want to change, invest and create a competitive, carbon-dioxide-free future where LKAB becomes a supplier of sponge iron”, says Niklas Johansson, Senior Vice President of Communication and Climate at LKAB.

At the same time, LKAB is warning that the project may be delayed, mainly because the process of obtaining a building licence to start construction is taking longer than expected.

Recent price and cost increases mean that the estimated investment cost of the demonstration project has risen to over SEK 20 billion.

Lennart Håkansson

editor@northswedenbusiness.com