Blastr Green Steel plans to invest in an iron ore pellet plant in Gildeskål municipality in Northern Norway to supply its Finnish green steel mill, it said March 9.
The investment in Gildeskål is estimated at more than Eur1 billion ($1.1 billion), which makes it one of the largest industrial projects in the Nordic region.
However, a final investment decision is expected in 2025, subject to relevant permits and agreements. If it gets a final go-ahead, the facility will be tentatively planned to start production in 2028.
It will convert iron ore pellet feed into direct reduction (DR) pellets, which will be used as a raw material for the company’s recently announced low carbon steel mill in Inkoo, Finland.
The Gildeskål location chosen for the DR furnace is considered beneficial as it provides an ice-free harbor with easy access to seaborne iron ore from the Norwegian Sea. The company will source hydropower for it, and is currently in discussions with potential suppliers with a view of securing a long-term contract.
Pellets from the Gildeskål site will be a key part of Blastr’s steel value chain, where the aim is to reduce CO2 emissions from steel production by 95% mainly by departing from the use of coke.
“Our planned pellet plant in Gildeskål will supply Blastr’s [steel] production in Finland as well as a significant and growing world market for direct reduction pellets,” Blastr Green Steel CEO Hans Fredrik Wittusen said in a statement adding the project is going to be an important contributor to decarbonizing global steel production.
— Ekaterina Bouckley