April 2024 | SSAB has been selected by U.S Department of Energy to explore possibilities for production of fossil-free steel in the U.S.
SSAB will go into awards negotiations for up to 500 MUSD in funding from the U.S. Department of Energy for a potential construction of a HYBRIT® manufacturing facility. The facility will be capable of producing fossil free iron by using green hydrogen instead of fossil fuels. The project will also explore the possibility to expand capacity and capability at the SSAB steel manufacturing operations in Montpelier, Iowa, including increased use of renewable energy.
“We are pleased to have our project selected by the DOE for negotiations to accelerate decarbonization of the iron and steel sector. We see a great interest in sustainable products from the market and this project offers a critical opportunity to solidify a first-mover advantage for the U.S. industry,” says Chuck Schmitt, President of SSAB Americas.
This initiative would enable SSAB to expand its sustainable domestic supply chain for steel products. It would also advance the U.S. renewable energy transition objectives in response to the Bipartisan Infrastructure Law and the Inflation Reduction Act.
In January 2022, the company’s Board of Directors made a policy decision to transform the production system in Sweden and Finland and make it largely carbon dioxide-free. In 2021, the company started to produce and deliver smaller volumes of fossil-free steel through the HYBRIT pilot plant in northern Sweden. In 2023, the company introduced a carbon dioxide-free steel based on recycled scrap and using fossil-free energy.
Background
SSAB is a Nordic and US-based steel company. It has developed the products SSAB Fossil-free™ steel and Zero™, a largely carbon emission-free steel based on recycled steel. The company has employees in over 50 countries and production facilities in Sweden, Finland and the US. It is listed on Nasdaq Stockholm and has a secondary listing on Nasdaq Helsinki.
