The brief

Analyst view

• Joint venture producing fossil-free steel using hydrogen instead of coal and coke.
• Pilot plant produced 100 tonnes of hydrogen-reduced sponge iron in June 2021.
• Building Gällivare demonstration plant targeting 1.3 Mt/yr capacity, backed by 600 MW electrolyzer.

Technical approach

As reported

Hydrogen reduction

Hydrogen replaces coal

Hydrogen removes oxygen from iron ore instead of coal/coke. Hydrogen becomes water; ore becomes sponge iron.

Electrolysis

Fossil-free hydrogen production

600 MW electrolyzer powered by wind and hydropower splits water into hydrogen and oxygen.

Direct reduction

Sponge iron to steel

Solid sponge iron skips the blast furnace. Steel makers melt it and refine finished steel with only fossil-free energy.