SSAB secures €2.3 billion green financing for fossil-free steel mill project in Luleå

SAB has secured €2.3 billion in green financing to support its major transformation project: the construction of a state-of-the-art fossil-free mini-mill in Luleå, Sweden. The new facility is a central component of SSAB’s strategy to reposition its European operations as a leading producer of premium steel products, reduce production costs, and significantly lower CO₂ emissions.

The financing package includes contributions from the Swedish National Debt Office (Riksgälden), the Italian Export Credit Agency (SACE), and the Nordic Investment Bank (NIB). Crédit Agricole CIB acted as the Global Coordinator, Structuring Bank, and Green Loan Coordinator for the deal.

SSAB committed to the €4.5 billion investment in the new mill in 2024. The financing now secured comprises three long-term green loan facilities designed to cover the full lifecycle of the project:

• A SEK 15 billion syndicated loan guaranteed by Riksgälden under Sweden’s “Credit guarantees for green investments” program,

• An €808 million syndicated loan backed by SACE,

• And a SEK 1.15 billion loan from NIB.

All loans adhere to the Green Loan Principles and align with SSAB’s Green and Sustainability-linked Finance Framework.

“The strong interest in participating in the financing reflects SSAB’s leadership in the steel industry and the confidence our partners have in our transformation plan,” said Leena Craelius, CFO of SSAB. “The financial package provides the flexibility we need for the robust implementation of the project. The Luleå investment will help us reduce costs, enhance our product offering, and virtually eliminate CO₂ emissions from our Luleå operations.”

The new facility will feature two electric arc furnaces, advanced ladle metallurgy, and an integrated rolling mill. It will also include a cold rolling complex, advanced galvanizing, and continuous annealing capabilities. Designed to produce 2.5 million tonnes annually, the mill will operate using a flexible mix of fossil-free sponge iron, pig iron, and recycled scrap.

Once operational, the new mini-mill will replace the existing blast furnace-based production system in Luleå. SSAB estimates that the transition will largely eliminate the site’s carbon emissions, representing a reduction equivalent to 7% of Sweden’s total current CO₂ emissions.

André Gazal, Global Head of ECA & Multilateral Financing Solutions at Crédit Agricole CIB, commented: “We are proud to support SSAB’s transformative journey toward more sustainable production practices. Our commitment reflects not only our focus on sustainability but also our expertise in providing tailored financing solutions.”

The Luleå project is a cornerstone of SSAB’s broader decarbonisation strategy and is expected to provide long-term benefits, including lower costs, shorter lead times, and greater resilience to market fluctuations.

Source and Photo: SSAB