SSAB, LKAB, and Vattenfall plan to set up the world’s first value chain plant for fossil-free steel in Norrbotten, Sweden through their joint venture, Hybrit. The three companies announced on Monday that they have started the consultation process for setting up the plant.
The companies are awaiting authorization and completion of other investigations from the local government before they begin implementing their five-year plan to set up the plant in Norrbotten.
The JV plans to begin construction of the plant by 2023, with an operations commencement date set for 2025. Once it is set up, the plant could produce close to 1mn mt of iron, which is equivalent to 20pc of LKAB’s current capacity in Malmberget or close to half of SSAB’s blast furnace capacity in Lulea, the companies noted.
Hybrit will work on the project’s pilot phase and demonstration phase simultaneously. The JV is considering Vitafors industrial estates, where LKAB has mining operations, or Svarton industrial estate, where SSAB has its steel mill and LKAB has its ore port to set up the demonstration plant.
The purpose of the demonstration plant, which could be set up by the end of Q3 2020, is to understand the location benefits and design of the plant before finalizing on the Norrbotten plant site and its permit application.
The plant has the potential to reduce Sweden’s carbon dioxide emission by almost 10pc through fossil free steel by 2026.