SSAB has been granted SEK 1.45 bln (USD 132 mln) from the EU’s Just Transition Fund to support the transition to fossil-free steel production at its Lulea operations in Norrbotten, Sweden.
The funding will help decommission the current coal and blast furnace-based system in favor of a state-of-the-art mini-mill with electric arc furnaces and rolling complexes. This transformation will reduce Sweden’s CO2 emissions by 7pct, in addition to the 3pct reduction from SSAB’s Oxelosund plant.
The new Lulea mill is set to begin operations by the end of 2028, reaching full capacity in 2029, while the new electric arc furnace in Oxelosund is expected to start by late 2026. These investments will primarily be financed by SSAB’s cash flow.
The Just Transition Fund targets industries with high emissions, such as steel, metal, and cement. The steel industry in Norrbotten was identified as one of the key sectors eligible for funding under Sweden’s national program.
1 USD / 10.9 SEK
