SSAB to Invest $572.9 Mln Converting Mill for Fossil-Free Steel Production

By Dominic Chopping

STOCKHOLM–Swedish steelmaker SSAB said Friday that it has decided to invest 6.2 billion Swedish kronor ($572.9 million) at its Oxelosund mill to allow for production of fossil-free steel.

The company said the decision will enable a 3% reduction of Sweden’s total carbon dioxide emissions and it aims to start production of steel without carbon emissions, based on recycled steel and sponge iron, during the fourth quarter of 2026.

SSAB’s fossil-free steel is made by replacing the coking coal traditionally used for iron ore-based steelmaking with fossil-free electricity and hydrogen, and, as part of the Oxelosund conversion, it will invest in a new electric arc furnace, raw material handling, power line and restoration.

When the Oxelosund mill is converted, it will be able to use a flexible mix of fossil-free sponge iron and scrap as the raw material to produce steel without carbon dioxide emissions, it added.

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