SSAB to supply fossil-free steel for construction equipment
SSAB says it has entered into an agreement with global construction equipment manufacturer Putzmeister to supply future fossil-free steel for use in manufacturing products such as concrete pump trucks and concrete mixers.
SSAB and Putzmeister have a long history of partnership and technical cooperation, Kallanish understands. By using SSAB’s Strenx high-strength structural steel and Hardox wear plates, Putzmeister has developed very strong and lightweight truck chassis, pump crane booms and concrete mixer drums. The lighter machines increase machine performance but also reduce carbon footprint, SSAB says.
This agreement replaces conventional steel with steel made via Hybrit technology, developed by SSAB with mining company LKAB and energy company Vattenfall, using green hydrogen and fossil-free electricity.
Christian Koehl Germany
Hybrit green hydrogen-for-steel project completes storage test
Swedish renewable hydrogen-for-steel project Hybrit has completed a hydrogen storage pilot project, with flexible power procurement reducing variable operating costs by up to 31%, the group said Feb. 27.
The Hybrit collaboration between steelmaker SSAB, iron ore miner LKAB and power company Vattenfall said hydrogen production costs could be cut by 25%-40% when the first commercial plants are commissioned.
“The results show that it is technically possible to store fossil-free hydrogen gas for producing fossil-free iron and steel on an industrial scale,” Vattenfall said in a statement.
Hybrit optimized hydrogen storage in real time against both spot and intraday power markets, with cost savings of 26%-31% in the trial.
The pilot storage facility has operated intermittently since 2022 in 3-6-week periods.
“The pilot project has been highly successful and has given us the results we hoped for,” Vattenfall Industrial Partnerships industry decarbonization director Mikael Nordlander said in the statement. “We have shown that it is possible to use this technology to increase the flexibility of the electricity system and that it is a safe design that lasts over time.”
Vattenfall said the group reached 3,800 hours of operation, with 94% availability.
The project involved a 100-cu m steel-lined rock cavern in Svartoberget next to the direct reduction pilot plant for sponge iron production in Lulea, Sweden.
Hybrit said accelerated mechanical tests gave the equivalent results of 50 years’ operation.
The group will extend the pilot storage project to 2026 to carry out additional tests to optimize commercial storage design.
Vattenfall said around 7% of global CO2 emissions come from the steel sector. Hybrit technology could enable SSAB to reduce Sweden’s emissions by 10%, and Finland’s by 7%, it said.
Platts, part of S&P Global Commodity Insights, assessed carbon-accounted hot-rolled coil steel in Northwest Europe at $648/st on Feb. 26, compared with conventional HRC prices CFR Antwerp at Eur550/st ($576/st).
Hybrit initiative presents final report
Sweden’s Hybrit initiative will present the results of six years of research into fossil-free direct reduced iron-making technology in a final report to the Swedish Energy Agency, Kallanish learns from SSAB, a partner in the project.
Hybrit is a collaboration between SSAB, mining company LKAB and energy company Vattenfall, which have received several patents based on the results. The project is now continuing in the next phase where the process is to be implemented on an industrial scale.
The pilot phase resulted in the development of a new hydrogen-based technology for efficient fossil-free iron and steel production with 0.0 tonnes of CO2 emissions per tonne of steel. It also developed a new fossil-free iron product – sponge iron – that has significantly better properties than iron reduced with fossil gases such as natural gas. It also produced an efficient process practice for melting fossil-free sponge iron into crude steel in an electric arc furnace.
The project is the first in the world to demonstrate that the fossil-free value chain – from iron ore to steel – works on a semi-industrial scale. So far, more than 5,000 tonnes of hydrogen-reduced iron have been produced at the pilot plant in Luleå. Customers such as Volvo, Epiroc, Peab and many more are already using the fossil-free steel in vehicles, heavy machinery, buildings and consumer products.
Christian Koehl Germany
LKAB deliveries drop, foresees increased costs, operational disruptions
Iron ore prices remain at high levels despite their decrease in the first half of 2023, but uncertainty remains over global economic development, says LKAB. The miner is seeing a general increase in costs of energy, inputs, materials and services, while works on the Ore Railway during summer could continue to limit production and delivery capacity.
LKAB’s iron ore deliveries fell 6% on-year in the second quarter to 5.8 million tonnes, with an 81% proportion of pellet versus 82% a year earlier, Kallanish notes.
Iron ore production was down 7% to 5.3mt, affected by scheduled maintenance shutdowns, production disruptions and a shortage of crushed ore in Kiruna.
The average global spot price for iron ore products in Q2 was lower than in the same period last year, at $111/tonne versus $138/t a year earlier. This was also down $14/t on Q1. Quoted pellet premiums for the quarter were $30/t lower on-year.
Net sales plummeted 24% in Q2 to SEK 9.35 billion ($862.6 million) and net income was down 28% to SEK 3.05 billion. Earnings were impacted by lower prices for highly upgraded iron ore products and lower delivery volumes. They were also affected by higher prices for energy and other inputs, which accounted for 25% of increased costs, as well as lengthy scheduled maintenance shutdowns, measures to secure production capacity and increased exploration.
Production in Kiruna was limited by difficulties in transporting crushed ore from other mines. During the summer, extensive maintenance work was also carried out on the Ore Railway, further reducing transport capacity. Mining in Svappavaara, therefore, had to be curtailed during the summer.
The tribunal at the European Court of Justice has meanwhile delivered its judgment in the case concerning LKAB’s exclusion from the benchmark for sintered ore in the Emissions Trading System (ETS). The Court found that the European Commission was not in error in rejecting LKAB’s inclusion in the benchmark, according to the provisions of the ETS directive that were applicable at the time. LKAB is analysing the verdict and considering whether there are grounds for appeal, the miner concludes.
Adam Smith Poland
