SSAB will supply Amazon Web Services with fossil-free steel for the construction of a new data center in Malardalen, Sweden, it said in a statement released Nov. 26.
The collaboration will utilize pilot supplies of fossil-free steel produced through SSAB’s HYBRIT technology, while SSAB’s subsidiary Ruukki will supply roof and wall structures for the buildings.
Unlike traditional steelmaking, which relies on coking coal, SSAB’s HYBRIT process uses hydrogen, produced with renewable electricity, to produce sponge iron, which is then processed into steel. According to SSAB, the process emits water vapor instead of CO2 and largely eliminates CO2 emissions from the steelmaking process.
“By choosing steel made with the HYBRIT technology, AWS shows it’s possible to reduce the carbon footprint of data center construction regardless of whether the steel is made from scrap or virgin iron ore,” said Thomas Hornfeldt, VP of Sustainable Business at SSAB.
Meanwhile, SSAB announced separately that it had contracted Germany’s SMS group for the construction of a new 190-ton electric arc furnace for its Oxelosund steel plant in Sweden, which was expected online in fourth-quarter 2026.
The EAF, which according to SMS would be one of the largest and most powerful digital EAFs in the world, was key to SSAB’s transition toward a fossil-free steel producer and would also provide for a 3% reduction in Sweden’s overall carbon emissions.
Powered by a 280 MVA transformer, the installation would be equipped with highly advanced technology — a medium-voltage digital power feeding system – to meet the limitations imposed by the grid authority in terms of flicker, power factor and harmonic distortion.
SSAB said it had tasked SMS with the integration of the modular multilevel converter based direct feed system from GE Vernova’s Power Conversion business to be fitted in the new furnace at Oxelosund, which would ensure the new EAF operates smoothly and efficiently without disrupting the grid, thereby contributing to the reduction of CO2 emissions.
Platts, part of S&P Global Commodity Insights, assessed carbon-accounted steel hot-rolled coil at $580.24/st Northwest Europe spot basis Nov. 25, up 1% on the day.
