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 investment aims to accelerate SSAB’s shift to greener production methods. It also seeks to enhance the company’s competitiveness in the global steel market. SSAB’s president and CEO, Johnny Sjöström, emphasized that the move will strengthen Sweden’s industrial position. It will also help meet the growing global demand for low-carbon steel.

Collaboration with Danieli for Project Implementation

SSAB has partnered with the Italian engineering firm Danieli & C. S.p.A. for the engineering and pre-engineering phases of the Luleå EAF conversion. Danieli will configure the plant to process hot-briquetted iron (HBI) and recyclable steel scrap. This ensures efficient mill operations while using sustainable materials. The project is expected to start by the end of 2028. SSAB plans to achieve full operational capacity by 2029.