In June, Fortum and SSAB announced a joint commercial feasibility study and technical FEED (front-end engineering design) study to investigate the possibilities of producing hydrogen-reduced fossil-free sponge iron in Raahe, Finland. At the end of October, Fortum and SSAB reached a joint decision that it was not possible to find a commercial arrangement that would work for both parties given the current preconditions. Therefore, the study has been concluded and it has been announced that no further initiatives will be taken at this time.
The Finnish steelmaker said that the outcome of the FEED study will not affect its wider business and that it will continue to work on Nordic strip steel production.
These would support SSAB's plans to make its own production "largely fossil-free" by 2030. SSAB has now announced that a new mini-mill-based production system will be built in Raahe, Finland, and Luleå, Sweden.
"The decision on the order of investments in Raahe and Luleå is expected to be made next year (2024)," the company said in a statement.