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LKAB and Hitachi Energy launch strategic partnership for fossil-free steel production

Swedish mining giant LKAB and energy technology leader Hitachi Energy have launched a strategic partnership aimed at transforming LKAB’s production processes into a fossil-free model.

LKAB and Hitachi Energy launch strategic partnership for fossil-free steel production

Under the signed memorandum of understanding (MoU), the collaboration will initially focus on the sponge iron demonstration plant in Gällivare, leveraging hydrogen-based direct reduction (HDR) technology to scale up industrial sponge iron production.

Production Goals and Technology

The Gällivare plant is planned to produce 1.35 million tons of sponge iron annually, with a target of increasing this to 5.4 million tons in the coming years. Hitachi Energy will provide electric power management, grid integration, and efficiency solutions to make the production processes greener and more efficient. Compared to conventional carbon-based methods, HDR technology significantly reduces carbon emissions and improves energy efficiency in production.

Electrification and Sustainable Operations

As part of the partnership, LKAB will implement electric vehicles in mining operations, safe charging infrastructure, and energy storage systems. These initiatives will make production processes more flexible, safer, and environmentally friendly. Additionally, with renewable energy integration, the production line will rely on fossil-free energy sources.

Global and Industry Significance

The collaboration is not only a milestone for LKAB but also a critical step for the fossil-free transformation of the European steel and mining industry. Adoption of electrification and hydrogen-based production methods will serve as an example for the sector by reducing carbon emissions and improving energy efficiency. Successful implementation of HDR and electric production technologies will accelerate the environmental transformation of the European steel industry.

Future Outlook

This strategic partnership between LKAB and Hitachi Energy is pivotal for establishing a fossil-free production roadmap and defining sustainable production standards in the sector. In the coming years, as HDR and electric production technologies are expanded to larger-scale operations, the European steel industry is expected to undergo a significant environmental transformation.

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