Direct CO2 emissions (Scope 1)
In 2020, SSAB’s total direct CO2 emissions were 8,844 (9,587) thousand tonnes. Around 90% of SSAB’s direct CO2 emissions are generated by iron ore-based steel production at our sites in Luleå, Oxelösund and Raahe, in particular our blast furnaces. Approximately 98% of these emissions are related to metallurgical processes, i.e., to the use of coke and coal as reducing agents. In 2020, direct CO2 emissions from Nordic steel production were 8,105 (8,873) thousand tonnes and emissions intensity (tonnes of CO2 emissions/ tonne crude steel) was 1.64 (1.75). CO2 emissions generated in Nordic steel production are within the scope of the European Emissions Trading System.
In the US, our scrap-based EAF steel mills use close to 100% recycled steel as a raw material, thereby resulting in much lower direct CO2 emissions compared to blast furnace-based steel making.In 2020, direct CO2 emissions from the scrap-based steel production in the US were 722 (697) thousand tonnes and emissions intensity (tonnes of CO2 emissions/ tonne crude steel) was 0.68 (0.68).
Indirect CO2 emissions (Scope 2 and 3)
Indirect CO2 emissions (Scope 2) from energy occur from the generation of purchased electricity and heat. In 2020, SSAB’s indirect CO2 emissions were 1,145 (1,173) thousand tonnes. Energy indirect CO2 emissions from the scrap-based steel production in US are larger than the direct CO2 emissions, because electricity is used to melt the scrap metal in the electric arc furnaces.
SSAB’s other indirect (Scope 3) CO2 emissions in 2019 were an estimated 5.6 million tonnes. The majority of Scope 3 emissions are generated in the processing of sold products, which account for 40% of the total Scope 3 emissions. Of Scope 3 emissions, 38% are from production of purchased raw materials and services, 7% are upstream emissions of purchased fuels and electricity (not included in Scope 1 and 2 emissions) and 9% are generated in the downstream transportation and distribution. The share of Scope 3 emissions of SSAB’s total CO2 emissions was 34% in 2019.
Reducing CO2 emissions
The possibilities to further reduce CO2 emissions from current steelmaking processes are limited, but emissions can be controlled and to some extent further reduced by continuously striving to improve material and energy efficiency.
Although an increased availability of steel scrap in the future will enable an increase in scrap based steel production, the increasing global demand for steel can only be met by continuing to utilize ore-based iron production. To align with a transition to a low-carbon economy, the steel industry will require a step-change in emissions reductions through alternative steelmaking processes. Therefore, in 2016, SSAB, LKAB and Vattenfall joined forces to create HYBRIT (Hydrogen Breakthrough Ironmaking Technology), with the aim of developing the world's first fossil-free iron ore-based steel manufacturing. With HYBRIT technology, SSAB aims to be the first steel company in the world to bring fossil-free steel to the market in 2026.
In-line with these targets SSAB is committed to reducing its greenhouse gas (CO2e) emissions by 35% by 2032 (based on 2018 figures, Scope 1 and 2). The goal is in line with the objective of keeping global warming well below 2°C and it has been approved by the Science Based Targets initiative. All SSAB sites are developing their transformation plans and the Science Based Target will be reached by a stepwise emissions reduction pathway, in line with the HYBRIT initiative. Around 90% of the reduction will come from convertion to the fossil-free steelmaking process and the remaining 10% will be achieved from reduction of the fuel-related emissions from natural gas, propane and oil, which will need to be fossil-free as well – e.g. via electrification and use of bio-fuels. The development of fossil-free steels is creating business opportunities and competitive advantages for both SSAB and its customers. Read more
