SSAB's grant supports the conversion of SSAB's operations at Norrbotten Luleå to fossil fuel-free steel production. It was emphasised that this transition is part of Sweden's objective to significantly reduce CO2 emissions.
21 October 2024, the European Commission approved Sweden's decision to support SSAB through the Just Transition Fund. On 4 December 2024, the Swedish Agency for Economic and Regional Growth reported that it provided SSAB with approximately EUR 126 million of EU funding and national co-financing.
Elisabeth Backteman, Director General at the Swedish Agency for Economic and Regional Growth stated: “It is important for Norrbotten and for Sweden that the steel industry now accelerates its climate transition while maintaining competitiveness. It is also important for reaching Sweden's climate targets.”
Sweden's national program for the Just Transition Fund announced that the steel, metal and cement industries are identified as eligible sectors. It was stated that the steel industry in Norrbotten is one of the three sectors that can be funded.
SSAB announced that it is replacing its current coal and blast furnace-based production system in Luleå in favor of a state-of-the-art fossil-free mini-mill with electric arc furnaces and rolling complexes, which is expected to reduce Sweden's CO2 emissions by 7%. The new plant in Luleå is expected to be in operation by the end of 2028 and the electric arc furnace in Oxelösund by the end of 2026. The investments are financed by SSAB's own cash flow.
Johnny Sjöström, President and CEO at SSAB emphasized: ”The funding from the EU and the Swedish Agency for Economic and Regional Growth enables us to maintain a high pace in the transition to fossil-free steel production. It is a clear signal from both the EU and Sweden about the importance of our transformation. It will strengthen not only our competitiveness but the competitiveness of Sweden as a whole and means that we can continue to deliver the steel our customers demand.”
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