Norway to introduce its own CBAM in 2027
The Norwegian government has announced that it is planning to introduce the country’s own Carbon Border Adjustment Mechanism (CBAM) from 2027. The ministry of climate and environment and The Norwegian Environment Agency will work together on the scheme.
With its CBAM, Norway aims to prevent the European industry from losing its competitiveness and from relocating to other countries where environmental regulations are not stringent.
Andreas Bjelland Eriksen, minister of climate and environment, stated that the CBAM will set an equal price for emissions caused by the production of goods, whether they are produced in Norway or the EU, or are imported from other countries. Meanwhile, Jens Stoltenberg, minister of finance, pointed out that the CBAM will maintain the competitiveness of domestic industry, while providing incentives for other countries to cut their emissions.
Aurora to construct distribution facilities for Blastr’s green steel plant
Norwegian decarbonized steel developer chas announced that it has reached an agreement with Finland-based Aurora Infrastructure for the latter to build electricity distribution facilities for its green steel plant under development at Inkoo, Finland.
Accordingly, Aurora will undertake the design, construction, operation, maintenance and financing of the distribution facilities, allowing Blastr to advance its green steel project.
Additionally, Blastr will also explore the option to outsource its electricity networks to Aurora Infrastructure.
Blastr Green steel secures partner finance round for Finnish low-carbon steel plant
Blastr Green Steel has successfully completed its second strategic partner financing round to bolster the development of the integrated low carbon CO2 steel value chain, centered around its flagship steel plant located in Inkoo, Finland, the Norwegian company stated on Feb 3.
The latest financing round saw participation from three of Blastr’s founding investors and three new Finnish investors, all committed to sustainable growth. The first round of finance was done in June 2024. The company did not disclose how much has raised until now when asked by S&P Global Commodity Insights, but it confirmed that in total it should needed around Eur4 bln ($4.96 bln) of investment for its project.
Blastr is planning a direct-reduced iron (DRI-EAF) steel plant with an integrated green hydrogen production facility to produce 2.5 million mt of low-carbon steel in Inkoo, Finland. The company is also planning to build a pellet plant to produce 6 million mt of DR pellet feedstock annually to feed the steel plant in Finland. At the moment the company is looking for the DRI location and is exploring building it in the UK, the company’s spokesperson told S&P Global Commodity Insights on Feb. 3.
The new partners include Aurora Infrastructure, Onvest Oy, and Security Trading Oy. Aurora Infrastructure specializes in asset financing and the development of electricity networks in the Nordic region, while Onvest Oy is a family-owned enterprise that supports sustainable growth initiatives. Security Trading Oy focuses on sustainable investments.
The existing investors, which include commodity giant Cargill, Finland’s state-owned venture capital firm Tesi, and Blastr’s founding entity Vanir Green Industries, have also increased their stakes in the company, but the company did not disclose by how much.
“Blastr’s green steel project is a significant industrial investment for Finland, exactly what the country needs to accelerate its transition to a sustainable future,” Aurora Infrastructure’s CEO Robin Lindahl said.
“The Inkoo site, with its existing infrastructure and strategic location, is ideally suited for such an initiative. Projects like this are what we want to support at Aurora Infrastructure, and we have a proven track record of serving some of the largest industrial sites in Finland,” he added.
In late 2024, Blastr submitted an Environmental Impact Assessment (EIA) report for the Inkoo plant to Finnish authorities. The report confirmed that the facility could be developed sustainably, and Blastr plans to apply for the necessary environmental permits in 2025.
As the demand for green steel continues to rise, Blastr Green Steel is poised to play a crucial role in transforming the steel industry while contributing to Finland’s economic growth. Platts, part of Commodity Insights, assessed Northwest European hot-rolled coil carbon accounted at Eur655/mt ex-works Ruhr on Jan. 31, stable day over day. The assessment was calculated in line with the sum of Platts’ daily carbon-accounted steel premium (CASP) assessment and Platts’ daily hot-rolled coil price assessment in Northwest Europe.
Tata Nederland to import Norway hydrogen, export CO2
Tata Steel Nederland plans to import zero-emission hydrogen from Norway for use in the steelmaking process and also export captured CO2 to Norway for permanent storage.
The steelmaker has signed an agreement with CO2 and hydrogen transportation firm ECOLOG, along with Norwegian producer Gen2 Energy and the Port of Amsterdam, to explore the import of liquid hydrogen.
The hydrogen would be produced in Norway from hydropower and then cooled to liquid form and shipped in specialised vessels owned by ECOLOG. This is imported into the Port of Amsterdam and converted back into a gaseous state before being delivered to Tata Steel and other companies via a planned pipeline network.
A second agreement has been signed by Tata Steel and ECOLOG, along with Horisont Energi, the Port of Amsterdam, OCAP, the Norwegian bank DNB, and ABN AMRO, to explore a corridor for CO2 exports to Norway.
“In the production of steel, even in the new green steel installations, a small amount of CO2 is still emitted. This quantity of CO2 is only a fraction of what is emitted in the production of coal-based steel,” Tata Steel Nederland says in a note sent to Kallanish.
The CO2 will be captured at Tata Steel and other companies in the region. The cold energy released during the conversion of liquid hydrogen to gas at ECOLOG’s Port of Amsterdam terminal will be used to liquefy the CO2 at the same location. In this form, the CO2 can be transported by ship to Horisont Energi’s import terminal in Norway, where it will be permanently stored. This creates a liquid hydrogen/CO2 corridor, with efficient management of energy.
Adam Smith Poland
Smith Stål strengthens their position with the strategic acquisition of Stena Stål
Smith Stål a leader within the Norwegian market for the supply of steel, rebar and metals has entered into an agreement to acquire Stena Stål AS.
The transaction expands Smith Ståls customer base and notably incorporates an agreement to distribute a range of specialty steel and tools through Smith Ståls national sales network, widening further their product offering. Employees of Stena Stål AS will join Smith Stål and will have immediate access to a wider selection of locally stocked items from Smith Stål to present to the customer base.
Stena Stål AS had a turnover of 70 million NOK in 2023 and 11 employees. The takeover will be completed in the first quarter of 2024.
“The merger will provide significant synergies that will benefit both our and Stena’s customers through more efficient operations and increased competitiveness across a larger product range. Stena is a quality operation, and the inherent expertise is valuable both for us and our customers.” says Arne Reinertsen, CEO of E.A. Smith.
“This will be a beneficial transaction for both employees and customers of Stena Stål AS, and we are pleased that Smith Stål is taking the business forward. E.A. Smith is a stable and long-term owner, and we look forward to future cooperation with Smith Stål to develop the distribution of product categories in which we are strong in Sweden into the Norwegian market together.” says Stefan Svensson, CEO of Stena Stål AS.
The operations at the Moss warehouse will be discontinued after the takeover and moved to Smith Ståls facility in Holmestrand.
Source: smithstal.no
