Vattenfall, SSAB and LKAB have inaugurated the Hybrit pilot plant in Sweden which aims to be step towards fossil-free steelmaking.
Work on the plant started just over two years ago with financial support from the Swedish Energy Agency.
Tests will now be carried out at the Hybrit plant in several stages for the use of hydrogen in the direct reduction of iron ore – emitting water instead of carbon dioxide.
The hydrogen will be produced at the pilot plant by electrolyzing water with fossil-free electricity.
Tests will be carried out between 2020 and 2024, first using natural gas and then hydrogen to be able to compare production results.
The framework for Hybrit also includes plans to replace fossil oil with bio oil in one of LKAB’s existing pellet plants in Malmberget in a test period extending until 2021.
Preparations are also under way to build a test hydrogen storage facility on LKAB’s land in Svartoberget in Lulea, near the pilot plant.
Hybrit has the potential to reduce carbon dioxide emissions by 10% in Sweden and 7% in Finland, as well as contributing to cutting steel industry emissions in Europe and globally, the partners said.
The steel industry currently generates 7% of total global carbon-dioxide emissions.
Swedish Prime Minister Stefan Lofven said: “Right now we have a historic opportunity to do things that provide jobs here and now – but also hasten the climate transition that everyone realises is necessary.
“Today, you are laying the foundations that will enable the Swedish steel industry to be entirely fossil- and carbon dioxide- free in 20 years.
“Together we can rebuild Sweden as the world’s first fossil-free welfare nation.”
SSAB president Martin Lindqvist said: “I’m incredibly proud that our globally unique pilot plant has now been completed.
“It is a milestone in the transition to fossil-free steel. We aim to be the first to market, in as early as 2026, with fossil-free steel.
“Hybrit technology will enable us to eliminate carbon dioxide emissions in steelmaking and at the same time help our own customers to reduce their climate footprint.
“We have the chance to revolutionise the entire steel industry and show that net-zero emissions is possible. We must seize this chance.”
LKAB chief executive Jan Mostrom said: “I am delighted that today we can start up the plant together with the realisation that Swedish industry is leading the global transition to sustainable development and lower climate impact.
“For LKAB, Hybrit is a step on our journey towards our goal of being a leading carbon-free actor in a fossil-free value chain in 2045.
“The pilot plant will play a decisive role before we can ramp up the technology for use on an industrial scale. The oxygen in the iron is the great challenge and we need to eliminate it.”
Vattenfall president and chief executive Magnus Hall said: “A partnership like this shows how we can take the lead in the transition to innovative, fossil-free products.
“Vattenfall seeks to enable a fossil-free life within a generation, not just through fossil-free production but also through partnerships like Hybrit, where we can use electricity as a source of innovation for a fossil-free future.
“Our fossil-free electricity and its conversion to hydrogen are key components here, not just for the steel but also because the storage of hydrogen can balance an electricity system with more weather-dependent power generation and increased capacity challenges.
“I am proud that everyone involved has made it possible to start up this plant today and I look forward to seeing fossil-free steel on the market.”