(Gällivare/Sweden) – The world's first production plant for fossil-free sponge iron is being built in Gällivare in northern Sweden. According to the information, the choice of location is based in particular on the proximity to the iron ore mines, existing logistics and access to fossil-free electricity, which is required for the DRI (Direct Reduced Iron) manufacturing process.
Fossil-free value chain
The steel manufacturer SSAB, the iron ore mining group LKAB and the electricity supplier Vattenfall founded the joint venture Hybrit Development AB in 2016. The three companies want to create a completely fossil-free value chain from the mine to the finished steel and introduce a new technology in which fossil-free electricity and hydrogen are used instead of coal and coke using the direct reduction process. 
The first demonstration plant is scheduled to go into operation in 2026 to initially produce 1,3 million tons of fossil-free sponge iron per year not far from the Arctic Circle. The companies want to increase production to a total of 2030 million tons per year by 2,7 in order to be able to supply both SSAB and other customers.
Pilot plant in Luleå
A pilot plant in which the direct reduction process is being tested was inaugurated in Luleå, Sweden, in August 2020. 
This system is expected to deliver the first fossil-free sponge iron as early as 2021 and be made available to customers for testing (we reported). In several steps until 2024, natural gas and then hydrogen will be used in order to be able to compare the production results.
deep link
https://group.vattenfall.com/de/newsroom/pressemitteilungen/2021/hybrit-ssab-lkab-und-vattenfall-errichten-industrielle-produktion-fur-fossilfreien-eisenschwamm
www.hybritdevelopment.com
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Pilot plant for testing the direct reduction process in Luleå © Åsa Bäcklin / Hybrit
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Planned time frame / © Hybrit
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Sponge iron: In traditional steel production, the oxygen is removed from the iron ore using carbon and coke in a blast furnace (reduction process). The pig iron that is tapped from the blast furnace is liquid and is poured out as ingots at the end of the process. In the Hybrit process, oxygen is removed from the iron ore using hydrogen. The reduction takes place at a lower temperature and sponge iron is produced in pellet form (DRI, Direct Reduced Iron). The sponge iron is melted as “Hot Briquetted Iron” (HBI) in briquette form (several sponge iron pellets pressed together) in an electric arc furnace (source: Hybrit). / © Hybrit
