Environment and Energy
SSAB OK'd for $139M from European Commission for decarb
Written by Ethan Bernard
October 21, 2024
Sweden’s SSAB has been given the green light for €128 million ($139 million) by the European Commission (EC) for the steelmaker’s efforts at decarbonization.
The next step is approval from the Swedish Agency for Economic and Regional Growth to support the project through the EC’s Just Transition Fund.
A spokeswoman from SSAB told SMU that the company welcomed the EC’s decision and is now awaiting notification from the Swedish Agency.
“We hope to have a decision soon and look forward to implementing our transition to fossil-free steelmaking in Luleå at a high pace,” she added.
The Commission said the aid would support SSAB’s transition from the current coal-based steel production process in Luleå, in northern Sweden, to a nearly zero carbon emission system.
The operation will use an electric-arc furnace (EAF), and there will be equipment for secondary metallurgy and a caster.
The support is expected to accelerate the project by three years, with the new project slated to start producing “green steel” by 2029. The mill will have an annual capacity of 2.5 million metric tons of green slabs.
“This will contribute to the greening of the steel value chain, in line with the EU’s target of climate neutrality by 2050. At the same time, the measure ensures that competition is not distorted,” Margrethe Vestager, EVP in charge of competition policy, said in a statement on Oct. 20.
Clarification: An earlier version of this article said the funding had already been awarded.
Ethan Bernard
Read more from Ethan BernardLatest in Environment and Energy
November energy market update
In this Premium analysis we cover North American oil and natural gas prices, drilling rig activity, and crude oil stock levels. Trends in energy prices and rig counts are an advance indicator of demand for oil country tubular goods (OCTG), line pipe and other steel products.
SMU Spotlight: CRU’s Paul Butterworth talks EAFs, CBAM, and decarbonization
Last month I traveled to Sweden to the CRU Steel Decarbonisation Summit in Stockholm. I wanted to see if the European take on decarbonization was broadly different from what we are talking about here in the US.
GSCC introduces label for new emissions target
The Global Steel Climate Council (GSCC) has taken a step forward in standardizing the decarbonization process with the publishing of its labeling for a certified science-based emissions target.
DOE set to measure GHG intensity of industrial products, including steel
The US Department of Energy (DOE) is launching a pilot project to measure the greenhouse gas (GHG) intensity of certain energy-intensive industrial products, including steel.