SSAB secures environmental permit to transform steel plant in Luleå

SSAB has received approval from the Land and Environmental Court in Umeå to build and operate a mini-mill in Luleå, Sweden, marking a significant step toward fossil-free steel production. The new facility will replace the current steel plant, enabling a technological shift with major environmental and climate benefits while enhancing SSAB's production capabilities and market competitiveness.

Pioneering a Green Steel Transition

The transformation includes the establishment of a mini-mill featuring electric arc furnaces, rolling complexes, and advanced processing capabilities. This system will replace the existing blast furnace-based production once fully operational. Running on fossil-free electricity, the mini-mill will utilize raw materials such as HYBRIT-produced sponge iron (hydrogen-reduced iron ore) and recycled scrap, aligning with SSAB’s goal of achieving close to zero fossil carbon emissions.

“This is a significant milestone for SSAB and for Sweden’s transition to fossil-free steel production,” said Johnny Sjöström, President and CEO of SSAB. “The investment will not only reduce climate impact on a national scale but also safeguard jobs in Luleå, enhance production flexibility and efficiency, and expand our offering of premium steel products.”

Environmental and Economic Impact

The new facility will deliver substantial environmental benefits, including:

• Reducing carbon dioxide emissions by approximately 2.8 million tonnes annually.
• Improving resource efficiency.
• Cutting Sweden’s total CO2 emissions by 10%, with 7% attributed to Luleå’s transformation and 3% to changes in Oxelösund.

In addition to its environmental benefits, the mini-mill is expected to improve SSAB’s cost position, shorten lead times, and eliminate CO2-related costs, strengthening the company’s leadership in sustainable steel production.

Comprehensive Approval Process

SSAB’s transformation plans followed an extensive application and review process, culminating in the court’s decision to grant the permit. “This is an important step toward achieving Sweden’s climate goals,” noted Sara Arvidson, Director of Environmental Permits at SSAB’s Transformation Office. “We’re pleased that the process has resulted in this critical approval.”

Next Steps

With the environmental permit secured, SSAB will advance with detailed engineering and the building permit process. Once operational, the mini-mill will help meet increasing demand for sustainable, high-quality steels and reinforce SSAB’s role in driving the green transition of the global steel industry.

Source and Photo: SSAB