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LKAB, Höganäs AB and StatoilHydro to Investigate Possible Ironworks in Norway
03/10/2009 - LKAB, Höganäs AB and StatoilHydro have reached an agreement to conduct a feasibility study for a new natural-gas based DRI plant near Trondheim, Norway.
LKAB, Höganäs AB and StatoilHydro have reached an agreement to conduct a feasibility study for a new ironworks near Trondheim, Norway.
Together, the three companies will investigate the possibility of future DRI iron production in Norway. The feasibility study will be based on yearly production of 1.6 million tonnes, which should require some 2.2 million tonnes of DR (direct reduced) pellet raw material, a product LKAB specializes in.
“LKAB’s iron ore pellets are already some of the world’s most energy efficient, thanks to the ability of magnetite ore to yield energy in pellet production, coupled with our highly developed refining processes” commented Lars-Eric Aaro, LKAB’s Technology & Business Development Director. The market for high-quality iron is growing rapidly, mainly driven by increasing difficulties in accessing pure scrap.
The project will target a location close to the industrial facility at Tjeldbergodden, south of Trondheim, offering good links to existing infrastructure such as an incoming natural gas pipeline, methanol plant, and harbor. Using natural gas will enable the new facility to minimize CO2 emissions. The partner’s goal for the project is to develop the world’s most CO2-neutral DRI plant — an ironworks with the lowest CO2 emissions technologically possible.
The collaboration will capitalize on each of the partners’ technological know-how: LKAB’s experience with iron ore pellets, Höganäs’ usage and sale of metal products, and StatoilHydro’s skills in energy generation and gas refining.
“The steel market is expanding robustly. In Europe alone, annual growth in the past few years has been some 10 million tons, although this market is also being affected by the crisis,” said Alrik Danielson, CEO of Höganäs AB.
All three partners are technology leaders in their segments. A global leader in DR pellets, LKAB offers highly efficient logistics between Kiruna, Northern Sweden, and Tjeldbergodden, Norway. Höganäs AB is a technology and market leader in the metal powder industry with 1400 customers across 65 countries, working on processes enabling the substitution of scrap with DRI in steel production. StatoilHydro has long-term experience of developing and running oil and gas-based industries, with a sharp focus on energy-efficient and environmental solutions.
“We see opportunities for a promising manufacturing collaboration with LKAB and Höganäs AB, and want to contribute to advancing gas-based industry in central Norway,” responded Einar Strømsvåg, StatoilHydro’s Manufacturing Director.
The study is scheduled for completion in mid-2010, and will have a total third-party cost of NOK 12 m.
Founded in 1797, Höganäs is a leader within the iron and metal powder industry, with end products mainly used by the automotive industry and home appliances, lawn and garden and hand-tools. In 2008 the turnover was MSEK 6103 (5838) and income before tax was MSEK 483 (562).
