Swedish specialty steelmaker SSAB has announced that the conversion of its Oxelösund mill to fossil-free steel production will be delayed due to appeals connected to species protection regulations affecting the permitting process for a new power line. The delay impacts the electricity grid connection required for the company’s new electric arc furnace (EAF).
According to the company, Vattenfall Eldistribution informed SSAB that the timetable for the required grid connection has been postponed. The new power infrastructure is considered critical for the operation of the planned fossil-free steelmaking facility.
EAF construction continues as planned
Despite the permitting setback, SSAB stated that construction of the electric arc furnace itself continues according to schedule and remains within budget. The company had previously targeted the start of production at the new EAF in early 2027.
SSAB President and CEO Johnny Sjöström criticized the impact of Sweden’s permitting and grid approval procedures on industrial investment projects. He stated that uncertainty surrounding permitting processes and electricity infrastructure approvals represents a significant risk for future industrial electrification and modernization investments in Sweden.
Sjöström also emphasized that the European Union considers the steel industry a strategic sector, particularly amid increasing civil and military preparedness requirements across Europe.
The company said it will provide further updates once the full extent of the delay becomes clearer.
No major impact expected on 2026 performance
According to SSAB, the postponement is not expected to materially affect the company’s earnings or cash flow during 2026. The company also noted that current production operations and customer deliveries will remain unaffected.
SSAB stated that once the Oxelösund conversion project is fully completed, Sweden’s total carbon dioxide emissions are expected to decline by approximately three percent.