SSAB (Stockholm, Sweden), LKAB (Luleå, Sweden) and Vattenfall (Solna, Sweden) are joining together in a demonstration project called HYBRIT, to replace coal-based blast furnaces with direct hydrogen-based reduction technology. The HYBRIT initiative aims to demonstrate a complete industrial value chain for fossil-free, hydrogen-based iron and steelmaking. SSAB is a global steel company, LKAB mines and processes iron ore for the steel industry and Vattenfall is a European energy company.
The HYBRIT initiative has received support from the European Union, as one of seven innovative projects under the Innovation Fund. The project will receive €143 million for an industrial– and commercial–scale demonstration of a complete value chain for hydrogen–based iron and steelmaking, from mine to fossil–free steel. The grant consists of €108 million (Hybrit Development AB) for a demonstration of the hydrogen direct reduction process including fossil-free hydrogen production in Gällivare, a further €30 million (SSAB) for the demonstration of electric melting of hydrogen-based direct reduced iron in Oxelösund and finally €5 million (LKAB) for the demonstration of fossil-free DR-pellets production for the hydrogen reduction process. The project will produce approximately 1.35 million tonnes hydrogen reduced iron (sponge iron) annually, to be used for producing crude steel amounting to approximately 25% of Sweden ́s total production. This will reduce greenhouse gas emissions by 14.3 million tonnes CO2 over the first 10 years of operation, according to the Innovation Fund calculation model.
The E.U. Innovation Fund is one of the world’s largest funding programs for the demonstration of innovative low–carbon technologies that help reduce greenhouse gas emissions. The E.U. is investing more than €1.1 billion in total in seven projects that cover a wide range of relevant sectors to decarbonize the European industry and energy sectors, such as chemicals, steel, cement, refineries, and power and heat. The HYBRIT demonstration project is the only iron– and-steel project to have been granted support in the first
Innovation Fund call for large–scale projects. The grant agreement was signed by the parties at an official ceremony held in Stockholm, Sweden on April 1st.
“HYBRIT is paving the way for a fundamental change in the global steel industry. It also demonstrates how fast the green transition can happen: a few years ago, the possibility of producing emission–free steel would have sounded like science fiction. Now, green steel is entering the market. The support granted via the Innovation Fund is testament to the importance and potential of this technology, and the European Commission is convinced that this cutting–edge project will boost the European Union’s overall competitiveness. Green steel has the future, and that future is already here” says Frans Timmermans, Executive Vice President of the European Commission responsible for the European Green Deal.
HYBRIT was granted support to further advance the development toward eliminating emissions from iron and steel production by using fossil–free hydrogen for direct reduction of iron ore in the process. Going forward, the project will continue with proving the technical and commercial viability of the HYBRIT value chain, including (1) a demonstration of the hydrogen direct reduction process including fossil–free hydrogen production in Gällivare, Sweden (2) a demonstration of electric melting of hydrogen–based direct reduced iron and (3) a demonstration of fossil–free DR–pellets production for the hydrogen reduction process.
The full press release can be found here