Ovako leads the way towards a fossil free steel industry
Ovako, one of the Nordic region’s largest players in scrap recycling and steel production, has taken a groundbreaking step toward a more sustainable future.
Photo: the Swedish Energy Agency
Rooted in solid Nordic expertise in steel, Ovako has become the first in the world to use fossil free hydrogen for heating steel before rolling – an innovation that drastically reduces carbon emissions.
We spoke with Anders Lugnet, Group Technical Specialist in Energy & Furnace Technology at Ovako, about the new technology and what it means for both the company and the industry at large.
World leading technology with minimal climate impact
Traditionally, heating in the steel industry has been heavily dependent on fossil fuels. By replacing fossil-based propane with fossil-free hydrogen, Ovako has managed to reduce its carbon footprint to the lowest levels in the world for steel production. The only byproduct of the process is water.
“This is a technology that no one else has implemented before. We developed the concept ourselves, directly on the factory site, and involved all disciplines – from electrical and mechanical to piping and media. That has been key to our success,” says Anders Lugnet.
The project was carried out at Ovako’s facility in Hofors, an area long known for its innovative climate within the steel industry.
“This is often where new ideas are born and tested – whether it’s steel manufacturing, burner technology, or heat treatment. We are now also leading the development in fossil-free heating,” Lugnet adds.
Crucial support from the Industrial Leap
The investment was made possible with support from the Swedish Energy Agency through the government’s initiative the Industrial Leap, which aims to promote a green transition within Swedish industry.
“Without the support from the Industrial Leap, we probably wouldn’t have been first. It’s been a project full of challenges, but we’ve managed to overcome them all,” says Lugnet.
Advice to other industry actors
Finally, Anders Lugnet shares a clear piece of advice for others in the industry:
“If you want to be the best, you can’t wait for others to lead the way. You must dare to go first. We believe we are about five years ahead of the rest of the industry.”
On September 5, 2023, Ovako inaugurated its new facility for fossil free steel production in Hofors.
More information
