Decarbonized steel supply developer Blastr Green Steel plans to construct a low-carbon steel plant and integrated hydrogen production facility in Finland, the company said in a statement Jan. 3.
Capable of producing approximately 2.5 million mt/year of hot and cold-rolled steel, the Eur4 billion plant ($4.2 billion) will be constructed on an existing industrial site in Inkoo, Southern Finland, owned by Nordic energy company Fortum.
Production is scheduled to begin by the end of 2026.
Utilizing hydrogen rather than traditional energy feedstocks such and coke and coal, Blastr aims to reduce carbon emissions at the plant by 4.6 million mt/year compared to conventional steel production methods.
In addition, the company also plans to procure a “significant share” of the plant’s power requirements from “directly or indirectly owned” wind farms.
“Finland is an ideal location for our project. It has an ambitious low-carbon target, supportive and predictable operating conditions for the green industry, fossil-free energy, and a highly qualified workforce,” said Blastr Green Steel CEO Hans Fredrik Wittusen.
“The ice-free deep-sea harbor enables efficient, low-carbon logistics all year round and close access to the European market,” he added.
More companies are investing in low carbon steel projects as global demand for low carbon steel is expected to increase from below 5 million mt/year of steel products in 2021 to 200 million mt/year in 2030, with European demand rising to nearly 40 million mt by then, driven by the automotive and construction sectors.
Platts, part of S&P Global Commodity Insights, assessed Northwest Europe hot-rolled coil at Eur680/mt ($716/mt) ex-works Ruhr on Dec. 30, unchanged on the day but down 34.4% since the start of 2022.
— Euan Sadden