SSAB in Talks With U.S. Government Over Fossil-Free Steel

By Dominic Chopping

STOCKHOLM--Swedish steelmaker SSAB has been selected by the U.S energy department to explore the possibility of producing fossil-free steel in the U.S.

The U.S. government on Monday awarded $6 billion in grants to projects that aim to decarbonize energy-intensive industries and SSAB said it was chosen for talks over funding of up to $500 million.

The funding relates to a potential facility capable of producing fossil-free iron using green hydrogen. The project will also explore the possibility of expanding the capacity and capability of SSAB's steel manufacturing operations in Montpelier, Iowa, including increased use of renewable energy.

SSAB's fossil-free steel replaces the coking coal traditionally used for iron ore-based steelmaking with fossil-free electricity and hydrogen. It aims to deliver fossil-free steel to the market at commercial scale during 2026.

In 2021, SSAB started to produce and deliver small volumes of fossil-free steel from a pilot plant in northern Sweden and in 2023 it introduced SSAB Zero, a carbon dioxide-free steel based on recycled scrap and using fossil-free energy.

Write to Dominic Chopping at [e-mail]

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03-25-24 1017ET