SSAB's decision favours LKAB's transformation

LKAB, together with SSAB and state energy company Vattenfall, is building a demonstration plant for fossil-free sponge iron in Gällivare, in the joint Hybrit project.

“The decision by our partner in Hybrit and largest customer, SSAB, to invest in Luleå bodes well for our planned transition to production of fossil-free sponge iron in Gällivare. This increases the level of assurance with respect to LKAB’s future investment decision for the Hybrit demonstration plant, which is the first step in the successive transition we are planning,” says Jan Moström, LKAB’s President and CEO.

The Hybrit demo plant will produce 1.35 million tonnes of sponge iron. Then, in the early 2030s, LKAB will gradually expand the production of fossil-free sponge iron to a total of 5.4 million tonnes per year. Sponge iron will mainly be delivered to SSAB's plants in the Nordic region.

“Our plan, together with SSAB, is to build a competitive value chain for fossil-free steel, whereby we will supply SSAB with fossil-free sponge iron for the production of the fossil-free steel they will deliver to the market. Together, we have the possibility to eliminate10% of Sweden’s carbon dioxide emissions by 2030 while at the same time building competitive advantage for Swedish industry,” says Jan Moström.

The first Hybritdemon needs about 5 TWh of fossil-free electricity to produce green hydrogen. Expanding sponge iron production in Malmberget/Gällivare to 5.4 million tonnes per year would require 20 TWh of electricity.

Lennart Håkansson

editor@northswedenbusiness.com