SSAB is awarded financing for the transformation to fossil-free steel production

Swedish steelmaker SSAB is granted SEK 1.45 billion ($133 million) in the framework of the Just Transition Fund, an EU fund that in Sweden includes support to the transition of the steel industry in Norrbotten. The funding will contribute to the transformation to fossil-free steel production of SSAB’s operations in Luleå, a technology shift that will significantly reduce Sweden’s carbon dioxide emissions.

”The funding from the EU and the Swedish Agency for Economic and Regional Growth enables us to maintain a high pace in the transition to fossil-free steel production. It is a clear signal from both the EU and Sweden about the importance of our transformation. It will strengthen not only our competitiveness but the competitiveness of Sweden as a whole and means that we can continue to deliver the steel our customers demand,” says Johnny Sjöström, President and CEO at SSAB.
SSAB plans to decommission the current coal and blast furnace-based production system in Luleå in favor of a state-of-the-art fossil-free mini-mill with electric arc furnaces and rolling complexes. This will reduce Sweden’s CO2 emissions by 7% in addition to the 3% from the conversion of SSAB’s steel plant in Oxelösund. Startup of the new mill in Luleå is planned at the end of 2028 with full capacity in 2029, while startup of the new electric arc furnace in Oxelösund is expected toward the end of 2026. The investments are mainly funded with SSAB’s own cash flow.
Source: SSAB