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Swedish Government Allocates Funding to Carbon-Free Steelmaking Research

“One of the biggest challenges we face with global warming is reducing industrial use of fossil fuels. Investigating how to replace coal and coke with hydrogen in the Swedish iron and steel industries is both an obligation and a unique global opportunity to improve our competitiveness in the future,” said Erik Brandsma, the agency’s director general, in a statement. 

SSAB is one of three companies behind the initiative. The other two are iron ore miner LKAB and Vattenfall, Sweden’s state-owned power company. Together, they will study the use of hydrogen in direct reduction and the use of sponge iron in electric arc furnace steelmaking. They’ll also look at providing an electrical power supply source for hydrogen manufacturing and storage. 

To spur the initiative onward, the three have agreed to form a joint venture and contribute SEK46 million toward it. Combined with the investment from the Swedish Energy Agency, the initiative will have SEK102 million (about US$11.3 million) to work with. The agency previously contributed SEK7.7 million in funding. 

"The Swedish Energy Agency's decision to provide additional funding for the initiative opens the door for the launch of a number of new research projects by organizations such as KTH, Luleå University of Technology, SWEREA MEFOS, Lund University, Stockholm Environmental Institute, and RISE, who will work toward the goal of a carbon-dioxide-free steel industry," the agency said in a statement. 

The initiative is divided into three phases: a pre-feasibility study that will run through the end of this year, followed by research and testing to take place in a pilot-scale plant through 2024. The final step will be testing in a full-scale demonstration plant. 

Parallel to the research initiative, SSAB last week announced that it is studying whether to switch production from the blast furnace route to the electric arc furnace route at its facility in Oxelösund. 

“The study is a part of SSAB's long-term strategy where environmental and sustainability issues play an important role,” said SSAB technical director Martin Pei in a statement. 

The company said it will study the issue over the next year and may make a decision in 2018.