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SSAB, LKAB, and Vattenfall first in the world with hydrogen-reduced sponge iron

In Sweden, SSAB, LKAB, and Vattenfall have now produced the world’s first renewable hydrogen-reduced sponge iron at a pilot scale. The technological breakthrough in the Hydrogen Breakthrough Ironmaking Technology (HYBRIT) initiative captures around 90 percent of emissions in the steelmaking process and is a decisive step to fossil-free steel.

The HYBRIT pilot plant in Luleå, Sweden has completed text production of 100 tonnes of sponge iron demonstrating that it is possible to use fossil-free hydrogen gas to reduce iron ore instead of using coal and coke to remove oxygen. This is the first time ever that green hydrogen has been used in the direct reduction of iron ore at a pilot-scale (photo courtesy Åsa Bäcklin).

Last year, HYBRIT, a joint initiative of SSAB, LKAB, and Vattenfall, began test operations to make hydrogen-reduced sponge iron in the HYBRIT pilot plant in Luleå. Built with support from the Swedish Energy Agency, the pilot plant has now completed test production of sponge iron demonstrating that it is possible to use fossil-free hydrogen gas to reduce iron ore instead of using coal and coke to remove oxygen.

This is a major breakthrough both for us and for the entire iron and steel industry. LKAB is the future supplier of sponge iron and this is a critical step in the right direction. Progress with HYBRIT enables us to maintain the pace in our transition and already in 2026, we will begin the switch to industrial-scale production with the first demonstration plant in Gällivare, Sweden. Once LKAB has converted its entire production to sponge iron, we will enable the transition of the steel industry and reduce global emissions by around 35 million tonnes a year, which corresponds to two-thirds of Sweden’s entire emissions. This is the greatest action we can take together for the good of the climate, said Jan Moström, President and CEO at LKAB.

According to a statement, production has been continuous and of good quality. Around 100 tonnes have been made so far. This is the first time ever that hydrogen made with fossil-free electricity has been used in the direct reduction of iron ore at a pilot scale.

The goal in principle is to eliminate carbon dioxide (CO2) emissions from the steelmaking process by using only fossil-free feedstock and fossil-free energy in all parts of the value chain.

Fossil-free electricity and hydrogen storage

Hydrogen-based reduction is a critical milestone, which paves the way for future fossil-free iron- and steelmaking. SSAB, LKAB, and Vattenfall intend, through HYBRIT, to create the most efficient value chain from the mine to steel, with the aim of being first to market, in 2026, with fossil-free steel at an industrial scale.

This technological breakthrough is a critical step on the road to fossil-free steel. The potential cannot be underestimated. It means that we can reach climate goals in Sweden and Finland and contribute to reducing emissions across Europe. At the same time, it creates new jobs and export successes. SSAB’s transition means we will reduce carbon dioxide emissions by 10 percent in Sweden and 7 percent in Finland. High-strength fossil-free steel will also allow us to help our customers to strengthen their competitiveness. As early as this year, we will deliver minor quantities of steel made using hydrogen-based reduction to customers, and in 2026 we will deliver fossil-free steel at a large scale, said Martin Lindqvist, President, and CEO at SSAB.

The hydrogen used in the direct reduction process is generated by the electrolysis of water with fossil-free electricity and can be used immediately or stored for later use. In May 2021, HYBRIT began work on building a pilot-scale hydrogen storage facility adjacent to the direct reduction pilot plant in Luleå.

Sweden’s and Vattenfall’s fossil-free electricity is a basic requirement for the low carbon footprint of hydrogen-reduced sponge iron. The breakthrough that we can announce today shows in a very real way how electrification contributes to enabling a fossil-free life within a generation, commented Anna Borg, President, and CEO at Vattenfall.

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