International Steel Mills
CRU: SSAB to switch to CO2-free EAF steelmaking at Lulea works
Written by CRU
April 5, 2024
Directors of Swedish steelmaker SSAB have decided to replace blast furnace-based steelmaking at Lulea with a ‘green steel’ mini-mill process.
The new-look plant will have 25% increased crude steel capacity at 2.5 million metric tons (mt) per year from two electric-arc furnaces (EAFs). It will also have advanced secondary metallurgy, a direct strip rolling mill to produce speciality products, and a cold rolling complex to serve the mobility segment with a broader range of premium products, the company said. Mill design includes enhanced product mix improvement with a 1-million-mt-per-year increase in special and premium steel grades.
The EAFs will be supplied with a combination of fossil-free sponge iron from the Hybrit demonstration plant in Gallivare and recycled scrap.
“The transformation of Lulea is a major step on our journey to fossil-free steel production,” said president and CEO Martin Lindqvist. “We will remove 7% of Sweden’s carbon dioxide emissions, strengthen our competitive position, and safeguard jobs with the most cost-effective and sustainable strip production in Europe.”
Installing EAFs at Lulea will cost an estimated $4.8 billion, including contingencies, partly compensated by avoiding the 2 billion euros expected to be spent on existing plant and equipment during the next 10 years.
The company added: “The new mini-mill will have a better cost position with lower fixed costs, higher efficiency, shorter lead times and eliminated CO2 costs.”
Startup of Lulea’s new mill is planned at the end of 2028 with full capacity reached a year later. The transformation of the company’s Oxelosund work to fossil-free steel making began late last year and is proceeding according to plan, SSAB said. Start-up is slated in 2026.
As for transforming the Raahe works in Finland, timing of that project will depend on the company’s financing and execution capacity, as well as learnings from the Lulea project, SSAB said.
This article was first published by CRU. Learn more about CRU’s services at www.crugroup.com/analysis.
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