Swedish steel company SSAB brings forward the target for the green transition to 2030 instead of 2045. The reason is the large demand for fossil-free steel. Before the plans can become a reality, the company needs to solve two major issues, electricity and permits.
SSAB has decided to rebuild the production system for sheet metal, which will bring the company’s green transition forward by 15 years. However, there are two major obstacles to the company’s plans.
– Our customers demand fossil-free products from SSAB, we can solve the technical challenges and we have a strong financial position. If we can solve the issue of power supply and environmental permits together with society, then it is possible to put in 15 years before the previously communicated plan. The plan, which we finance with our own cash flow, provides a broader product program and an improved cost position, says SSAB’s CEO Martin Lindqvist, in a comment.
Earlier green transition affects Sweden’s emission
The investment will cost around SEK 45 billion and applies to the company’s production in the Nordic region. If the plan is locked, it means, according to SSAB’s calculations, to reduce the company’s emissions by more than 8 million tonnes of carbon dioxide per year, compared with the current level.
For Sweden’s total carbon dioxide emissions, this means a reduction of about 10 per cent and in Finland by the corresponding 7 per cent.
The availability of electricity controls the transition
The next step will be to develop plans for the various production locations. According to SSAB, the order in which the system will be rebuilt depends on the availability of electricity and infrastructure in the towns.
The new system, which will replace today’s so-called minimills, will provide a broader product range and an improved cost position according to SSAB. During the year, the company will begin its application for a permit for the reconstruction of Luleå and Brahestad.
At SSAB in Borlänge, hot-rolled and cold-rolled high-strength steel is manufactured from blanks that come on trains, mainly from SSAB Luleå but also from SSAB Oxelösund.
More info: ssab.se