(Luleå/Sweden) – The Hybrit pilot plant in Luleå, Sweden has completed its test production of sponge iron. Around 100 tonnes have been produced so far. “Production was continuous and of good quality. This is the first time ever that hydrogen produced with fossil-free electricity is being used in the direct reduction of iron ore on a pilot scale,” explains the utility Vattenfall SE.
The steel manufacturer SSAB, the iron ore mining group LKAB and 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 hydrogen is used instead of coal and coke using the direct reduction process.
The hydrogen-based reduction is a “crucial milestone that paves the way for future fossil-free iron and steel production”. Once LKAB switches all of its production to sponge iron, “we will enable the transition of the steel industry and reduce global emissions by about 35 million tons per year,” which is two-thirds of Sweden's total emissions, says Jan Moström, president and CEO of LKAB .
Martin Lindqvist, president and CEO of SSAB, emphasized that the change means “we will reduce carbon dioxide emissions by ten percent in Sweden and by seven percent in Finland.” Fossil-free steel will also strengthen customers' competitiveness. “As early as this year we will be supplying small quantities of hydrogen-based steel to customers, and in 2026 we will be selling fossil-free steel on a large scale.”
As reported, the three companies want to be the first companies to bring fossil-free steel onto the market on an industrial scale in 2026. The production facility is being built in Gällivare in northern Sweden. 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.
The Pilot plant in Luleå was put into operation in late summer last year after two years of construction with the support of the Swedish Energy Agency. The technology is now constantly being developed further. Until 2024, natural gas and then hydrogen would be used first in order to be able to compare the production results, it was said at the time.
Fossil-free electricity and hydrogen storage
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, this is done using hydrogen at a lower temperature and sponge iron is produced in pellet form. Several sponge iron pellets are pressed together to form a briquette and are melted in an electric arc furnace.
The hydrogen used in direct reduction is produced by electrolysis of water with fossil-free electricity and can be used immediately or stored for later use. In May, Hybrit began building a hydrogen storage facility next to the test facility in Luleå. The investment costs amount to around 250 million Swedish crowns (24,6 million euros).
Fossil-free iron and steel production using Hybrit technology required approximately 15 terawatt hours of fossil-free electricity per year at SSAB's current production levels. Once the conversion of LKAB operations has been completed, a cumulative total of around 55 terawatt hours per year would be required. According to Vattenfall, this requires “faster and more predictable approval procedures for expanding the Swedish electricity network and electricity production”.
Photos
Sponge iron produced fossil-free in the pilot plant (in the background) / © Åsa Bäcklin, Hybrit
