Swedish Energy Agency grants SEK 314 million for fossil-free steel production
SSAB is transitioning to fossil-free steel manufacturing. The Swedish Energy Agency, through the Industrial Leap, is now granting support to a project aimed at reducing emissions through a more efficient post-treatment process.
Currently, hot rolling and further processing into finished steel products are carried out using heating from propane and natural gas. As part of the project, SSAB will develop the design for a new facility in Luleå, where these processes will instead be powered by reused energy and innovative electrification solutions. The Industrial Leap funding covers 50 percent of the total project cost.
“The project can contribute valuable knowledge to the development of energy integration and electrification solutions within industry. The technology opens up new possibilities and innovations and is an important part of the transition to a more sustainable industrial sector”, says Klara Helstad, Deputy head of the department for Research, Innovation and Business Development at the Swedish Energy Agency.
Steel post treatment is currently carried out in Borlänge. A future facility in Luleå is estimated to reduce greenhouse gas emissions by approximately 170,000 tonnes per year.
“We are pleased that the Swedish Energy Agency is supporting our transition. The Industrial Leap is an important tool for driving technological development and reducing the climate impact of industry”, says Carl Orrling, EVP, Technical Director and Head of the Transition Office at SSAB.
Industry in transition
The funding is provided under the Recovery and Resilience Facility (RRF), part of the EU’s recovery fund Next Generation EU. The aim is to promote a green and sustainable transition across Europe.
Recovery and Resilience Facility Annual Report 2025 (commission.europa.eu)
About the Industrial Leap
The Swedish Parliament has adopted the climate goal that Sweden shall have no net emissions of greenhouse gases to the atmosphere by 2045 and thereafter achieve negative emissions. Major and complex technological leaps are required across several industries to reach this goal. To support the transition, the government has launched the long-term initiative the Industrial Leap.
Since 2021, the Industrial Leap has been part of the green recovery for a climate-smart society following the COVID-19 pandemic and is included in the EU’s Recovery and Resilience Facility (RRF).
