Swedish iron ore mining company, LKAB will transition from iron ore pellet production to carbon-free sponge iron production using a new, hydrogen-based methodology.
The company intends to reach net-zero carbon emissions over the next 15 years by using direct reduced iron (DRI) technology to cut yearly CO2 emissions from its global consumer base by 35mn mt. LKAB currently emits 700,000mt of yearly CO2 which is around 4pc of Sweden’s total emissions from steel.
The company will invest SEK10–20bn ($1.17-2.3bn) per year over the next 20 years in automation, construction, and new operations. In offering carbon-free products, the miner expects to double annual sales by 2045.
The steel industry is responsible for about 7pc of global emissions today. Blast furnace steelmaking emits more carbon due to the use of metallurgical coal, compared with DRI that uses an electric arc furnace.
($1 = SEK8.57)