Use better steel: SSAB’s customers benefit from leading CO₂ efficient production

CO₂ efficient steel production

There are two different ways of producing steel. The processes are differentiated according to the raw material used in the process – iron ore-based (Blast Furnace based production, BF) or scrap-based from recycled steel (Electric Arc Furnace based production, EAF). Since availablescrap today accounts for approximately 30% of the demand for new steel, we are today dependent on both steel produced from scrap and steel made from iron-ore. In 2050, it is estimated scrap-based steel will account for about 50% of demand, which means that 50% of demand will continue to be met by steel made from iron-ore.

Read more about SSAB´s steel production processes

Steel production is resource intensive and generates carbon dioxide (CO₂) emissions. 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. SSAB’s operations account for 10% of Sweden’s and 7% of Finland’s CO₂ emissions. However, SSAB’s blast furnace-based production is among the most CO₂ efficient in the world owing to the use of high-grade iron-ore pellet and, high-quality coke, as well as efficient and uninterrupted processes. For example, our cold-rolled steel production emits approximately 6% less CO₂e than the European average and as much as 17% less than the Chinese average (see the chart above).

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

Environmental Product Declarations validate sustainable production

EPD stands for Environmental Product Declaration, which is an independently verified document that provides transparent, comparable information about the environmental impact of products from the lifecycle perspective. SSAB EPDs comply with international standards, which provides objective data highlighting the low carbon footprint of SSAB products. This is also a good tool for SSAB customers wanting to minimize their environmental impact. EPDs report values from the entire product lifecycle. This means that emissions from suppliers are included as well as all energy used in manufacturing the product. EPDs are available for all SSAB products and are registered in the International EPD® system. SSAB’s EPDs are available here.