SSAB Delays Lulea Fossil-Free Steel Mill Project by One Year

SSAB

Electricity Supply Delays Impact Lulea Mini-Mill Timeline

Swedish steelmaker SSAB has postponed the transformation of its Lulea facility into a fossil-free mini-mill by one year. The delay is attributed to setbacks in securing sufficient electricity supply, caused by regional grid upgrade issues. Construction of key substations has been hindered by outage planning problems, leaving the site without the power needed to operate its electric arc furnaces (EAF).

Investment and Production Targets at Risk

SSAB initially approved a €4.5bn investment in January 2022 to build the new mini-mill, replacing its existing blast furnace-based production. The facility will feature two EAFs, a direct strip rolling mill, and a cold rolling line for automotive steels. Once operational, the site is expected to produce 2.5mn t/yr of steel using both recycled scrap and fossil-free sponge iron from the Hybrid demonstration plant in Gallivare. Plans originally targeted 2028 for the first EAF to become operational, reaching full capacity in 2029. However, these milestones are now delayed by one year.

Despite the postponement, SSAB confirmed it will still move forward with EAF installation and maintain its long-term transition strategy. In late 2024, the company secured a €128mn grant from the European Commission to support the transition from coal-based production to a near net-zero emission system, reinforcing its commitment to sustainability despite the temporary setback.

The Metalnomist Commentary

SSAB’s delay underscores the critical role of reliable electricity infrastructure in steel sector decarbonisation. Without timely grid upgrades, even large investments risk losing momentum. The company’s continued push toward fossil-free steel highlights both the opportunities and challenges of Europe’s green industrial transition.