Volvo Group and SSAB to collaborate on the world’s first vehicles of fossil-free steel.
There is more to this than meets the eye. Wind power is fossil free, but wind turbines are made of steel. For every tonne of steel produced in the world, almost two tonnes of CO2 are emitted as well. One or two wind turbine might not make much of a difference. But think of all the wind turbines across the globe. All the cars. All the trains. The good news is, this is all about to change. Together with our partners LKAB and Vattenfall, we have come up with HYBRIT, a way to produce steel without emitting CO2.
Volvo Group and SSAB have signed a collaboration agreement on research, development, serial production and commercialization of the world’s first vehicles to be made of fossil-free steel. Volvo plans already this year to start the production of concept vehicles and components from steel made by SSAB using hydrogen.
SSAB, LKAB and Vattenfall have commenced building a rock cavern storage facility for fossil-free hydrogen gas on a pilot scale next to HYBRIT’s pilot facility for direct reduction in Luleå, North of Sweden. This is an important step in the development of a fossil-free value chain for fossil-free steel. The investment cost of just over SEK 250 million is divided equally across the holding companies and the Swedish Energy Agency, which provides support via Industriklivet.
SSAB, LKAB and Vattenfall are now taking a new, decisive leap forward in their work to make fossil-free steel for the global market. Industrialization of the technology being developed through HYBRIT will start in Gällivare, northern Sweden, where the world’s first production plant for fossil-free sponge iron – from feedstock to steel – is being planned.
Decarbonizing the steelmaking process is non-negotiable if the industry wants to successfully transition from being one of the highest CO2 emitters to a sustainable, fossil-free actor in the global value chain. Although SSAB is already one of the world’s most CO2-efficient steel companies, their new pioneering approach to steel production is leading the way to providing quality steel with zero CO2 emissions.
Why choose fossil-free steel for your business when the cost price is higher than traditional steel and the bottom line might be impacted? Adding economic and environmental value to your business by investing in steel that has created zero carbon emissions during its production is just one factor; your business investment today is a commitment to improving tomorrow’s environment, for everyone.
A joint venture company between SSAB, LKAB and Vattenfall
Decision for pilot phase
Fossil-free pellets trial
Hydrogen-based reduction and smelting trials
SSAB fossil-free steel on market
Transformation - BFs to EAFs at SSAB Raahe & SSAB Luleå
Fossil-free fuel is on the way! In 2026, SSAB aims to launch its pioneering fossil-free premium grade steel – revolutionizing the industry by implementing a steelmaking process that does not create fossil-fuel CO2 emissions.
The steel industry is currently one of the highest CO2 emitters, accounting for 7% of all emissions globally. While SSAB is already one of the world’s most CO2 efficient steelmakers, we know that the industry still has a long way to go. Our objective is to lead the steel industry to a decarbonized future.
The quality and properties of fossil-free steel will be the same as SSABs steel of today. The properties of SSAB’s steel are created in the steelmaking, rolling and heat treatment processes, which will remain the same. The only difference in the process is that the energy used will be exclusively fossil-free electricity and other fossil-free fuels.
SSAB is on target to deliver the first commercial products in 2026.
The global challenge of halting and reversing current rates of climate change is urgent. The steel industry has the potential to play a significant role in reducing carbon dioxide emissions both in the production phase and by supporting current rates of recycling.
The HYBRIT initiative will contribute to reaching the global climate goals under the Paris Agreement and the national climate goals in Sweden and Finland. Our goal is to reduce Sweden’s CO2 emissions by 10% and Finland’s by 7%. We believe that by taking the lead and showing that it is possible to decarbonize the steel industry, others will follow. The potential is enormous.
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