SSAB awarded SEK 1.45 billion grant from EU fund to accelerate sustainable shift

The funding will contribute to the transformation to fossil-free steel production of SSAB’s operations in Luleå, a technology shift that will significantly reduce Sweden’s carbon dioxide emissions, the steelmaker has said.

‘‘The funding from the EU and the Swedish Agency for Economic and Regional Growth enables us to maintain a high pace in the transition to fossil-free steel production. It is a clear signal from both the EU and Sweden about the importance of our transformation. It will strengthen not only our competitiveness but the competitiveness of Sweden as a whole and means that we can continue to deliver the steel our customers demand,” said Johnny Sjöström, president and CEO at SSAB.

SSAB plans to decommission the current coal and blast furnace-based production system in Luleå in favour of a fossil-free mini-mill with electric arc furnaces and rolling complexes. This will reduce Sweden’s CO₂ emissions by 7% in addition to the 3% from the conversion of SSAB’s steel plant in Oxelösund. Startup of the new mill in Luleå is planned at the end of 2028 with full capacity in 2029, while startup of the new electric arc furnace in Oxelösund is expected toward the end of 2026. The investments are mainly funded with SSAB’s own cash flow.

The Just Transition Fund is an EU fund that focuses on industries and regions with high carbon dioxide emissions. The fund will help reduce emissions and tackle the challenges created by the transition. In Sweden’s national program for the Just Transition Fund, the eligible sectors are the steel, metal and cement industries. The steel industry in Norrbotten was pinpointed as one of three industries that could be awarded the funds.

On 21 October 2024, the European Commission announced that it had approved a Swedish measure to support SSAB through the Just Transition Fund. On 4 December 2024, the Swedish Agency for Economic and Regional Growth, which administers the fund in Sweden, announced that SSAB is granted SEK 1.45 billion in EU funding and national co-financing.

“It is important for Norrbotten and for Sweden that the steel industry now accelerates its climate transition while maintaining competitiveness. It is also important for reaching Sweden's climate targets,” commented Elisabeth Backteman, director general at the Swedish Agency for Economic and Regional Growth.

SSAB has previously been granted nearly SEK 38.6 million from the same fund for SSAB Academy, a pilot program for employee competence development in Luleå.