Swedish specialty steel producer SSAB has announced that the new initiative for a carbon dioxide-free Swedish steel industry, which it launched together with Swedish iron ore producer LKAB and Swedish power company Vattenfall, has gained additional support from the Swedish Energy Agency. The agency has passed a resolution to finance a four-year long research project for SEK 102 million ($11.3 million).
The research project of the initiative will take a look at processes such as fossil fuel-free pellet manufacturing, hydrogen-based direct reduction, and the use of sponge iron in electric arc furnaces, along with providing an electrical power supply source for hydrogen manufacturing and storage.
Meanwhile, SSAB, LKAB and Vattenfall have decided to form a corporate joint venture to propel this initiative forward. The new corporation will be formed in spring this year.
SSAB, LKAB and Vattenfall launched their initiative to solve the CO2 issue in the Swedish steel industry back in the spring of 2016. The project’s goal is to come up with a process that emits water instead of carbon dioxide by using hydrogen instead of the current procedure that is based on blast furnaces burning coal and coke.