Blastr Green Steel plans to invest in an iron ore pellet plant in Gildeskål municipality in Northern Norway. The plant will supply the company’s recently announced green steel plant in Inkoo, Finland.

“The world needs massive amounts of steel. However, the traditional coal-based processes make steel production one of the main sources of greenhouse gas emissions. The steel industry accounts for about 8 percent of global CO2 emissions, as one ton of steel produced creates around 2 tons of CO2. The decarbonizing of steel production is a key enabler for the green transition, says Hans Fredrik Wittusen,” CEO of Blastr Green Steel.

Gildeskål’s planned facility will convert iron ore pellet feed into so-called high-quality direct reduction pellets, which are used as raw material for green steel production. The power needed for the process will be based on hydropower, and Blastr is now in discussions about long-term power contracts. The location is considered beneficial as it provides an ice-free harbour with easy access to seaborne iron ore from the Norwegian Sea.

When operational, the plant will provide 120 jobs, in addition to significant indirect employment opportunities and economic effects for the municipality and the region. The investment in Gildeskål is estimated at more than EUR 1 billion.

Large-scale project for Nordic green industry

The pellet plant in Gildeskål will supply raw materials for Blastr’s planned green steel plant in Inkoo, Finland, where coal is replaced by green hydrogen in the steel production process. In total, this will be one of the largest industrial projects in the Nordic region. Pellets from the Gildeskål site will be a key part of Blastr’s green steel value chain, where the aim is to reduce CO2 emissions from steel production by 95 per cent.

“Our planned pellet plant in Gildeskål will supply Blastr’s production of low-carbon steel in Finland as well as a significant and growing world market for direct reduction pellets. Therefore, this project will be an important contributor to decarbonizing global steel production,” says Wittusen.

A final investment decision is expected in 2025, subject to relevant permits and agreements. The plant is tentatively planned to start production in 2028.