Blastr eyes Norway captive pellet plant, merchant sales

Blastr Green Steel plans to invest in an iron ore pelletising plant in Gildeskål municipality, northern Norway, Kallanish learns from the company. The pellet plant will supply Blastr’s projected steelmaking plant in Inkoo, Finland.

The planned facility in Gildeskål will convert iron ore pellet feed into high-quality direct reduction pellet, which is used as raw material for green steel production. The power needed for the process will be based on hydropower, and Blastr is now in discussions about long-term power contracts. The location is considered beneficial as it provides an ice-free harbour with easy access to seaborne iron ore from the Norwegian Sea, Blastr notes.

It says the plant will provide 120 jobs when operational, in addition to significant indirect employment opportunities and economic effects for the municipality and the region. The investment in Gildeskål is estimated to exceed €1 billion ($1.06 billion). According to Blastr chief executive Hans Fredrik Wittusen, the pellet plant will also supply “a significant and growing world market for direct reduction pellets”.

A final investment decision is expected in 2025, subject to relevant permits and agreements. The plant is tentatively planned to start production in 2028.

Christian Koehl Germany