HYBRIT: SEK 200 million invested in pilot plant for storage of fossil-free hydrogen in Luleå


SSAB, LKAB and Vattenfall, the owners behind the HYBRIT initiative, are investing SEK 150 million and the Swedish Energy Agency is contributing almost SEK 50 million towards the construction of a storage facility for hydrogen at the HYBRIT pilot plant for fossil-free steel. The investment is an important step towards the goal of fossil-free iron and steel production.

The HYBRIT initiative began in 2016. By using fossil-free electricity and hydrogen instead of coke and coal in steel production, the emissions will be water instead of carbon dioxide. The initiative has the potential to reduce Sweden’s total carbon dioxide emissions by 10 percent. The plan is to build the new hydrogen gas storage facility 25-35 meters below the ground surface on LKAB's land in Svartöberget, close to the pilot plant currently under construction on SSAB's site in Luleå. The storage facility is expected to operate from 2022 to 2024.

The implementation study for the HYBRIT initiative showed that large-scale storage of hydrogen gas can play an important role in Sweden's future energy system. As well as acting as a buffer to ensure an even flow to the steel production, a large-scale hydrogen gas storage facility would offer a better opportunity to balance the electricity system with a greater proportion of weather-dependent power generation, and enable a competitive production cost for the fossil-free steel.

"I am very pleased that we, as partners, are step by step developing our joint fossil-free steel project, and the support from the Swedish Energy Agency is important. Now, with the support of the community, we are investing in the next piece of the jigsaw puzzle for a value chain in which hydrogen gas plays a decisive role in the success of the initiative and the development of competitive fossil-free electricity generation in Sweden," says Magnus Hall, Vattenfall's President and CEO.

"The HYBRIT initiative gives us the opportunity to eliminate carbon dioxide emissions completely, and to lead the work of developing fossil-free steel products. The investment in a storage facility for fossil-free hydrogen gas is an important building block in achieving our goal of a fossil-free value chain from ore to finished steel. I am delighted with the support from the Swedish Energy Agency," says Martin Lindqvist, SSAB's President and CEO.

"Hydrogen gas storage is an important issue to solve in order to bring the various elements of HYBRIT together, and we are pleased that we can make use of parts of our former ore port facility for this experiment," says Jan Moström, LKAB's President and CEO.

"Large, complex and expensive leaps in technology need to be taken for the sake of the climate, to achieve the goal of zero net emissions. Large-scale storage of hydrogen gas will be an important piece of the jigsaw puzzle for a fossil-free value chain for steel manufacturing, but also in a future electricity system with an increasing proportion of weather-dependent power," says Robert Andrén, Director General of the Swedish Energy Agency.

In June last year, SSAB, LKAB and Vattenfall, the owners behind the HYBRIT initiative, started the construction of a unique pilot plant in Luleå. Work also began recently on the reconstruction of a pellet works in Malmberget to replace fossil fuel with bio oil, with the aim of manufacturing fossil-free pellets. The pilot plants for fossil-free steel production will be used from 2021 to 2024, and the partners in the initiative are already looking into the possibility of scaling up the manufacturing by building a demonstration plant in 2025, three years earlier than previously planned, to produce fossil-free steel from iron ore for commercial use. The aim for 2035 is to sell fossil-free steel on a broad scale.

Facts about the hydrogen gas storage facility:

  • Hydrogen gas is climate-friendly when manufactured by means of the electrolysis of water, using electricity from fossil-free sources to decompose water into hydrogen and oxygen.
  • Construction is scheduled to begin in 2021. When the storage facility is finished, it will be visible above the ground only as a small building and a pipeline connecting the pilot storage and the pilot plant on SSAB's land.
  • The 100 cubic-meter pilot hydrogen gas storage facility a quantity of energy corresponding to the annual electricity consumption (household electricity consumption, not electric heating) of 20 households.
  • The design is a pressurized hydrogen gas storage facility in a bedrock cavern with a steel lining as a sealing layer.
  • During design and construction, risk analyses are carried out and preventive measures are taken to fulfill all applicable regulatory requirements and regulations.

HYBRIT highlighted as one of the most ambitious initiatives at UN Climate Action Summit

SSAB, LKAB and Vattenfall to advocate for net zero emissions at UN Climate Week


SSAB, LKAB and Vattenfall, the owners behind HYBRIT initiative, will join the Leadership Group for Industry Transition that was launched today at the UN Climate Action Summit in New York by Swedish Prime Minister Stefan Löfven. HYBRIT was presented as one of the most ambitious and most transformative initiatives to tackle climate change. The aim with the Leadership Group is to accelerate transition to low carbon pathways in hard to abate sectors in line with the goals of Paris Agreement.

UN Secretary-General António Guterres invited the world to a Climate Action Summit on 23 September to present concrete, realistic plans to reduce greenhouse gas to net-zero emissions by 2050. Sweden, together with India, has been commissioned to demonstrate the importance of the industry for the transition to a sustainable and fossil free society. In conjunction to this, a Leadership Group for Industry Transition was launched, by Sweden and India during the UN Climate Action Summit. HYBRIT owners will be part of the Leadership Group and was presented as one of the most ambitious and most transformative initiatives to tackle climate change.

The Leadership Group will work towards accelerating transition of all industry sectors to low carbon pathways in line with the goals of Paris Agreement, while pursuing efforts to reach net-zero carbon emissions by 2050. By supporting governments and industries in low-carbon industry transformation, as well as establishing an arena for innovation-sharing and public-private collaboration, the Leadership Group will provide conditions for successful and enhanced implementation of Paris Agreement while acknowledging the principles and provisions of United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement including equity and CBDR-RC.

“Steel industry is seen, as one of the “hard to abate” sectors, but we firmly believe that net zero emissions is possible. That’s why we took the initiative to create HYBRIT. Fossil free steel has tremendous potential and could help many customer segments to truly become fossil free. We believe that industry transition is positive both for the climate and for our industry’s competitiveness”, says Martin Lindqvist President and CEO SSAB

“I think we can argue that HYBRIT is one of the most ambitious industrial transition projects globally today. All three companies have made commitments to be fossil free already by 2045, we have a concrete timetable and have through HYBRIT started construction and made investments to begin the transition. For us LKAB, Europe’s largest iron ore producer, HYBRIT it an essential part in creating a climate neutral value chain from the rock to hot steel and we’re doing this with support from the Swedish government and together with academia”, says Jan Moström, president and CEO, LKAB.

“With HYBRIT and Leadership Group we take the opportunity to be part of the transition and to work on solutions for the most important challenge of our time. Together we want to inspire others to collaborate across organizational borders as real change and new business opportunities require a fossil-free value chain approach”, says President and CEO of Vattenfall, Magnus Hall.

The Leadership Group will contribute with laser-like focus on (a) ‘hard to abate’ industries (accounting for over 30 per cent of global emissions); and (b) providing a specific toolkit of policy frameworks, mechanisms and roadmaps as a model for how government and industry can work together towards transition recognizing this will be different for each sector and country.

LISTEN TO THE FACEBOOK LIVE EVENT IN NEW YORK IN CONJUNCTION TO THE UN CLIMATE ACTION SUMMIT

LISTEN TO THE FACEBOOK LIVE EVENT IN NEW YORK IN CONJUNCTION TO THE UN CLIMATE ACTION SUMMIT

Rocky Mountain Institute had a panel on decarbonizing steelmaking and other hard-to-abate sectors. Thomas Koch Blank, a principal in RMI's Industry program and leaders from HYBRIT – the Swedish initiative formed by SSAB, LKAB, and Vattenfall. They have been invited by UN to participate during the Climate Week in New York, with the mission to show that it is possible to change a hard-to-abate sectors, such as steel. Meet Marti Pei, EVP Chief Technical Officer SSAB/Chairman Hybrit Development, Jan Moström, CEO at LKAB, Andreas Regnell, Senior Vice President of Strategic Development and Faustine Delasalle, Head of Clean Energy Systems at SYSTEMIQ. To hear the discussions click here: https://www.facebook.com/RockyMtnInst/videos/506890813445664/

SSAB, LKAB and Vattenfall to advocate for net zero emissions at UN Climate Week

SSAB, LKAB and Vattenfall to advocate for net zero emissions at UN Climate Week


SSAB, LKAB and Vattenfall, the owners behind the HYBRIT initiative, will participate in the Climate Week and UN Climate Action Summit in New York. The message they will bring is that net zero emissions is possible for the iron- and steel industry and energy sector.

UN Secretary-General António Guterres has invited the world to a Climate Action Summit on September 23 to present concrete, realistic plans to reduce greenhouse gas to net zero emissions by 2050. There is still a window of opportunity to achieve a hold in the increase of global average temperature to well below 2°C and even, to 1.5°C above pre-industrial levels. The Summit will bring together governments, the private sector, civil society, local authorities and other international organizations to develop ambitious solutions

To demonstrate the importance of the industry for the transition to a sustainable and fossil-free society, the owners of the fossil-free HYBRIT (Hydrogen breakthrough ironmaking technology) initiative, SSAB (global leader in high-strength steels), LKAB (Europe’s largest iron ore producer) and Vattenfall (a leading European energy company), will participate in an events prior to the Climate Action Summit and during the Climate Action Week. Martin Lindqvist, President and CEO of SSAB, is invited to speak at the climate meeting, on September 23rd.

One of the prioritized action areas identified by the UN is the transformation of industry, and especially the so-called hard-to-abate sectors, such as steel. The steel industry is one of the highest CO2-emitting industries, accounting for 7 percent of CO2 emissions globally and 10 percent in Sweden. The HYBRIT mining-iron-steel-energy value-chain aims to develop the world’s first fossil-free ore-based steelmaking technology. By replacing coal with fossil-free electricity and hydrogen, HYBRIT technology will eliminate CO2 emissions, thus creating high potential to curb emissions and help the world to mitigate climate change.

“The steel industry is seen as one of the “hard to abate” sectors but we firmly believe that net zero emissions is possible. That’s why we took the initiative to create HYBRIT. Fossil-free steel has tremendous potential and could help many customer segments to truly become fossil-free. We believe that industry transition is positive both for the climate and for our industry’s competitiveness,” says Martin Lindqvist, SSAB President and CEO

“I think we can argue that HYBRIT is one of the most ambitious industrial transition projects globally today. All three companies have made commitments to be fossil-free already by 2045. We have a concrete timetable and through HYBRIT we have started construction and made investments to begin the transition. And we’re doing this with support from the Swedish government and together with academia,” says Jan Moström, LKAB President and CEO.

“We want to inspire others to take on a value-chain approach. Real change and new business opportunities require co-operation. Also, we hope large scale fossil-free hydrogen production and storage will enable us to find value-added for the renewable and fossil-free energy system and other industries,” says Magnus Hall, Vattenfall President and CEO.

In today’s ore-based steelmaking process, iron ore pellets are converted into metallic iron by reduction in a blast furnace. The iron oxide and carbon then react to form CO2 gases, as well as metallic iron. The iron is further processed before a semi-finished steel product is produced.

The HYBRIT process is based on direct reduction of iron ore using fossil-free electricity and hydrogen (H2). Hydrogen is produced by electrolysis of water using fossil-free electricity. The hydrogen reacts with the oxygen in the iron ore and metallic iron and H2O (water vapor) is formed.

SSAB, LKAB and Vattenfall ready to step up work to achieve fossil-free steel production



HYBRIT owners, SSAB, LKAB and Vattenfall, is ready to step up the work to achieve a fossil free steel production and to move up the construction of the HYBRIT demonstration plant by three years, writes the three CEOs, in an opinion piece published in today’s Swedish daily newspaper, Dagens Nyheter. The opinion piece comes just ahead of the United Nations (UN) Climate Action Summit, taking place in New York later this month.

“Now, as the UN gathers for a new climate summit in New York on September 23, we are ready to step up our work for fossil-free steel production and to move up plans to reduce carbon dioxide emissions. We are ready to increase efforts from our side, but if we are to achieve success, society and lawmakers must do the same,” wrote Martin Lindqvist, President and CEO, SSAB, Jan Moström, President and CEO, LKAB, and Magnus Hall, President and CEO, Vattenfall, in the opinion piece.

“We are already looking into the possibility of building a demonstration plant in 2025, three years ahead of plan, so that we can immediately thereafter produce iron ore-based, fossil-free steel for commercial use. The goal is to be selling fossil-free produced steel on a broad scale by 2035,” they wrote.

The three companies highlighted four important preconditions for this rapid transition to succeed:

  1. We need large volumes of fossil-free electricity. According to our calculations, the transition to HYBRIT requires the equivalent of about 10 percent of Sweden’s current electricity consumption. There will also be demand for electricity from other companies and consumers. We will need continued good access to fossil-free electricity with a high level of delivery reliability, competitive pricing and initiatives to create greater flexibility, e.g. through opportunities to store energy. This work must not be delayed. We are prepared to assist in these efforts.
  2. The public sector in Sweden must get involved and share the risk. Investing in groundbreaking technology such as HYBRIT is often risky, time-consuming and associated with major investments. At the same time, the projects bring great social benefit in the form of increased research, competence and opportunities to achieve climate goals. The Swedish government’s proposal to double the Industrial Leap initiative over three years is good, but it needs to be secured for a long time to come. A fund is also needed at the EU level, and there may also be a need for support in being able to write off and scrap old plants (so-called stranded assets) in favor of new, sustainable technology.
  3. As a society, we cannot afford to keep emitting greenhouse gases. The EU trading system for emission allowances is currently being revised, and as a result, the costs of carbon dioxide emissions are rising. The system should be designed from 2020 to benefit the most climate-efficient methods from mining to finished steel. The system needs to be developed even after the upcoming trading period. Sweden and the rest of the EU also need to strive to change other parts of the world ahead of similar systems. Bold, sustainable solutions must not be prevented because parts of the world have a lower level of ambition and therefore carry on using old technology.
  4. Effective, appropriate permitting process in Sweden is required so that work on the transition is not significantly delayed or stopped completely, not least so that sufficient electricity can be obtained now that we have the opportunity to speed up the demonstration phase. It can sometimes take 10 years to obtain an environmental permit or a concession to lay an electrical cable or to upgrade the grid. The Swedish government is planning some measures, but more work is needed.


“Steel is an amazing material. It builds communities, is durable and can in principle be recycled an infinite number of times,” wrote the CEOs in the opinion piece. “But recycled steel will not be enough. In line with social development, population growth and increasingly higher standards of living all over the world, demand will increase for new steel made from iron ore. Therefore, sustainable solutions are needed. Solutions that contribute not just to solving climate change, but to social development. This should be Sweden’s contribution to the UN climate summit in New York.”


Read the article here.

HYBRIT speeds up for fossil free steel


HYBRIT, the Initiative for fossil free steelmaking, between SSAB, LKAB and Vattenfall, starts its efforts to prepare for the demonstration phase, three years before plan. Aim is to have a demonstration plant in place already 2025. Due to the new ambitions, organizational changes will start at the joint venture Hybrit Development AB.

The Initiative, started in 2016, is today in a pilot phase. Several important research and development steps have been taken according to the time plan and now plan is to start the preparations for the demonstration phase and commercialization, three years before plan. This will happen in parallel with the development of the pilot phase. The higher ambitions also mean that the CEO’s scope will require a different background and competence and in conjunction to this, the board has decided to start the recruitment of a new CEO. In the meantime, Martin Pei will be executive Chairman of the Board to unite the work on the pilot and the new project and Mårten Görnerup will leave the position as Managing Director of Hybrit Development.

“Mårten has done an excellent job, building up Hybrit Development from the ground and has delivered the on-going pilot phase according to plan. The Board wishes to extend our gratitude and best wishes to Mårten in his next professional step”, says Martin Pei, chairman of Hybrit Development AB.

“I am very proud to have been able to take part in the initial phase of this fantastic initiative, and especially proud of what our HYBRIT teams have accomplished so far. We are now well underway with the construction of pilot plants and have outlined and initiated research and development activities which will guide us towards our overall objective – a fossil free future”, says Mårten Görnerup.

HYBRIT at SuomiAreena in Pori Finland

 

 

 

 

The HYBRIT initiative was raised during the debate at SuomiAreena in Pori, Finland, in July. The purpose was to raise interest in the initiative also in Finland.
Martin Pei, Chairman of the Board of Hybrit Development and technical director of SSAB, gave a brief presentation of the initiative. A panel discussion was followed with Antti Vasara, CEO of Technological Research Center VTT in Finland, Karoliina Auvinen, co-operation director for the project Smart Energy Transition at Aalto University, Mia Rahunen, climate expert at the World Nature Fund, Janne Peljo, project director within the focus area climate solutions at Sitra and Harri Leppänen, environmental director at SSAB.

See the entire panel debate that attracted many interested audience and debaters above.


HYBRIT commended by Swedish Environmental Protection Agency

The Swedish Environmental Protection Agency has awarded HYBRIT its Environmental Goals Prize for "Boldness and momentum". This initiative, conceived by SSAB, LKAB and Vattenfall, plans to produce fossil free steel by replacing coal with fossil free electricity and hydrogen. The by-product from steelmaking will then be water rather than carbon dioxide.

The Environmental Goals Prize was founded by the Swedish Environmental Protection Agency to recognize and reward ambitious and successful environmental work, which contributes to Sweden achieving its environmental goals. This is the first time the prize has been awarded and the idea has been to inspire perseverance and innovativeness in environmental work.

Martin Pei, chairman at Hybrit Development and executive vice president and CTO at SSAB, was present to receive the prize during the conference "Miljömålsdagarna" in Karlskrona, Sweden.

"With HYBRIT, SSAB, LKAB and Vattenfall are showing that it is possible to change the steel industry. But it requires boldness, innovation and urgency. That is why it feels fantastic that HYBRIT is being recognized in this way. We are already seeing how several steel companies throughout the world have started venturing to see the possibilities and maybe follow our example. I should say that the whole of Sweden and the world are the winners of this prize, as this new technology will enable us to reduce Sweden's carbon dioxide emissions by 10% and Finland's by 7%, and can potentially lower emissions in other parts of the world too," Pei says.

The iron and steel industry is responsible for 7 percent of carbon dioxide emissions globally, and is thus one of the industries with the highest emissions. World population growth and urbanization are expected to lead to an increase in global demand for steel. It is against this background that SSAB, LKAB and Vattenfall have created HYBRIT, with the aim of developing the world's first fossil-fuel free ore-based steelmaking technology. By using fossil-fuel free electricity and hydrogen for steelmaking instead of coke and coal, the by-product will be water instead of carbon dioxide. The HYBRIT initiative has received financial support from the Swedish Energy Agency.

The Environmental Protection Agency's citation reads:

"They have shouldered the enormous challenge of changing Swedish steel production to make it completely fossil free. With a groundbreaking new approach and great courage, the initiative has shown there to be no impediment to producing steel with hydrogen instead of coal. Not only may the project come will change Swedish steelmaking, which is responsible for 10% of Sweden's greenhouse gas emissions, it also has the potential to disseminate this technology globally and cut a substantial proportion of the world's climate-impacting emissions. The HYBRIT initiative is a trailblazer in the true sense of the word!

 

 

Hybrit
Hybrit
180