Ovako starts up energy-efficient and hydrogen-compatible furnace

The Swedish company Ovako has invested the equivalent of around 5.5 million euros in a new, energy-efficient blast furnace at its Boxholm site. The new blast furnace reduces energy consumption by 50 percent and lowers carbon dioxide emissions by 6,000 to 7,000 tons per year. The furnace can be operated with fossil-free hydrogen, making it an important component of sustainable steel production. 

Ovako continues the way in sustainable steel production with an investment of around 6 million US dollars in a new energy-efficient furnace at its Boxholm site. The new furnace reduces energy consumption by 50 percent and significantly lowers carbon dioxide emissions. It is also future-proofed to run on fossil-free hydrogen, making it a key part of Ovako’s and the region’s transition towards a more sustainable future.
Sweden’s Minister for Climate and the Environment, Romina Pourmokhtari said in her speech during the inauguration: “Ovako is a brilliant example of how industrial investments can drive both climate benefits and economic growth. With projects like the hydrogen plant in Hofors and the new furnace here in Boxholm, Sweden is strengthening its position as a leader in sustainable steel production — setting an example for the entire world.”
The new furnace is a central part of Ovako’s strategy to reduce emissions throughout the entire production chain. Thanks to its energy efficiency and potential to switch to hydrogen, the furnace can significantly reduce carbon dioxide emissions in the Östergötland region.
“With this investment, we are taking concrete steps to reduce the climate impact of the industry and move towards more sustainable steel production. At the same time, we ensure that we can deliver high-quality steel with the lowest possible carbon footprint”, said Marcus Hedblom, President and CEO of Ovako Group.
The new furnace in Boxholm reduces energy consumption by 50 percent compared to previous technology and lowers CO₂ emissions by 6,000–7,000 tonnes annually. According to the company, itis future-proofed to operate on fossil-free hydrogen, which could eliminate emissions from the heating process entirely. The SEK 60 million investment is part of Ovako’s long-term strategy to reduce carbon dioxide emissions by 80% compared to 2015 levels.
Source: Ovako