SSAB and Stena Metall Collaborate to Promote Fossil-Free Steel Production in Sweden

Sweden’s leading steel producer, SSAB, has partnered with Stena Metall, a key player in Sweden’s recycling industry, to secure a steady supply of recycled scrap metal for its upcoming electric arc furnace (EAF) mill in Oxelösund. This move is part of SSAB’s ambitious strategy to transition to fossil-free steel production, with a significant focus on reducing carbon emissions and enhancing Sweden’s recycling capabilities.

Sustainable Scrap Supply Chain and CO2 Reduction
The agreement between SSAB and Stena Metall ensures that a larger portion of Sweden’s recycled steel stays within the country, reducing the environmental footprint associated with steel production. SSAB’s new EAF mill will leverage both recycled scrap metal and fossil-free sponge iron (HBI) to produce steel, leading to an estimated 3% reduction in Sweden’s CO2 emissions from the steel sector. The first scrap deliveries are expected to begin as the new EAF facility ramps up in 2026, with shipments primarily transported by rail between Halmstad and Oxelösund, helping to further lower transportation-related emissions.

SSAB’s commitment to fossil-free steel is a pivotal part of its larger strategy to decarbonize the steel production process, reducing fossil carbon emissions and enabling a more circular economy. The company aims to use cleaner, recycled materials to meet both the demand for high-quality steel and sustainability goals, thus aligning with Sweden’s broader environmental objectives.

Green Steel Transformation: Oxelösund as a Pilot Project
The Oxelösund mill, which will be the first of SSAB’s facilities to transition from traditional blast furnace technology to EAF production, is a flagship project in SSAB’s green steel transformation. This conversion will help SSAB produce high-quality steel with almost zero fossil carbon emissions, a key part of its larger vision for a sustainable future. The Luleå mill will follow suit, further advancing the company’s goal to transition its entire Nordic production system to produce steel with minimal environmental impact.

In addition to the EAF conversion, SSAB is increasing the share of premium products in its output, focusing on high-quality steel for automotive and industrial applications. The company’s approach aims to meet both market demand for premium-grade steel and the growing global push toward low-carbon, sustainable manufacturing processes.

Long-Term Strategic Partnership with Stena Metall
Fredrik Lyckesvärd of Stena Recycling emphasized that the long-term collaboration with SSAB is a significant step toward achieving a sustainable steel production model in Sweden. Together, the two companies are exploring ways to recycle materials not only for SSAB’s own production needs but also for its customers in Sweden, demonstrating the potential for synergies between the recycling sector and the steel industry. This partnership aligns with the growing push for circular economy principles, where resources like scrap metal are reused and recycled, minimizing waste and environmental impact.