Blastr Green Steel has signed a letter of intent with regional power company Sogn og Fjordane Energi (SFE) for long-term supply of clean electricity to Blastr’s Norwegian pellet plant.

The pellet plant, to be potentially located in Lutelandet on the west coast of Norway, would supply feedstock to Blastr’s ultra-low CO₂ steel plant currently under development in Inkoo, Finland.

“This is an important step towards securing power capacity and grid connection for the potential pellet plant at Lutelandet which will leverage renewable hydro and wind power to accelerate the development of a decarbonized steel value chain.”

Hans Fredrik Wittusen, CEO of Blastr Green Steel

“This is an important step towards securing power capacity and grid connection for the potential pellet plant at Lutelandet which will leverage renewable hydro and wind power to accelerate the development of a decarbonized steel value chain,” said Hans Fredrik Wittusen, CEO of Blastr Green Steel. “We are very pleased with the support from SFE and other key regional partners as we progress the development plan for the Lutelandet site.”

In August, Blastr selected the Lutelandet industrial area as a potential location for the development of a plant for converting iron ore pellet feed into direct reduction (DR) pellets due to the site’s industrial infrastructure, access to renewable energy, and its deepwater port.

Under the LOI, Blastr and SFE will work together to establish a long-term power supply agreement. The parties target signing a final agreement by the end of 2025, subject to Blastr attaining relevant regulatory approvals and making a final investment decision for the Lutelandet plant.

“We support the development of new green industries in western Norway based on clean energy and look forward to working closely with Blastr to establish a long-term power supply agreement for their green pellet plant.“

Bengt Jostein Haugnes, head of energy and markets at SFE

“We support the development of new green industries in western Norway based on clean energy and look forward to working closely with Blastr to establish a long-term power supply agreement for their green pellet plant,“ commented Bengt Jostein Haugnes, head of energy and markets at SFE. “The LOI reflects our joint commitment to work towards realizing an important decarbonization project which may create a large number of jobs and significant value creation in Fjaler municipality.”

Blastr aims to produce 6Mt/yr of high-quality DR pellets as feedstock for its ultra-low CO2 steel plant planned in Inkoo, Finland. The plant will employ around 120 people, with an estimated investment of around €1.2 billion.