Swedish firms SSAB, LKAB and Vattenfall have decided to build new fossil free steelmaking plant at Gallivare in Northern Sweden under the Hybrit initiative.
The project will first start with a demonstration plant with a production capacity of 1.3mn mt of fossil free sponge iron, which is expected to be ready by 2026. Hybrit aims to produce close to 2.7mn mt of fossil free steel by 2030 and supply to various steel makers, including SSAB.
The demonstration plant will later be a part of LKAB’s iron pellet making project, it said in a statement. Gullivare was chosen for the establishment of the plant was after the assessment of industrial synergies, proximity to iron ore and logistics like electricity supply and energy optimization.