SSAB Secures EU Funding for EAF Conversion in Luleå Steel Mill

Transition to Electric Arc Furnace Supported by EU and Swedish Funding
SSAB, a leading Swedish steel producer, has been awarded $130 million from the European Union’s Just Transition Fund, alongside additional support from Sweden’s Agency for Economic and Regional Growth. This funding is aimed at converting SSAB’s Luleå steel mill from its current blast furnace/basic oxygen furnace (BF/BOF) system to an electric arc furnace (EAF) configuration. The transition to EAF is a key part of SSAB’s strategy to significantly reduce its carbon emissions and align with Sweden’s ambitious climate targets.

Environmental Impact and Carbon Emissions Reduction
The conversion of the Luleå mill to EAF production will result in a substantial reduction in CO2 emissions. SSAB estimates that the project will cut Sweden’s national emissions by 7%, contributing to the country’s overall climate goals. This follows a similar initiative at SSAB’s Oxelösund mill, which will reduce emissions by an additional 3%. By shifting from the traditional blast furnace method to the more sustainable EAF system, SSAB is taking major steps toward fossil-free steel production.

Financing and Competitiveness Enhancement
Although the EU funding is crucial, SSAB plans to fund the majority of the investment through its own cash flow. This strategic investment aims not only to accelerate SSAB’s transition to greener production methods but also to enhance the company’s competitiveness in the global steel market. SSAB’s president and CEO, Johnny Sjöström, emphasized that this move will strengthen Sweden’s industrial position while meeting growing global demand for low-carbon steel.

Collaboration with Danieli for Project Implementation
SSAB has partnered with Italian engineering firm Danieli & C. S.p.A. for the engineering and pre-engineering phases of the Luleå EAF conversion. Danieli will configure the new plant to process hot-briquetted iron (HBI) and recyclable steel scrap, ensuring that the mill operates efficiently while using sustainable materials. The project’s expected startup date is the end of 2028, with full operational capacity to be achieved by 2029.