Steel Mills

SSAB could use DOE funding to expand US operations
Written by Laura Miller
March 26, 2024
With the help of a large government grant, SSAB may soon expand its operations in the US – including constructing a fossil-fuel-free green ironmaking facility in Mississippi.
The Department of Energy (DOE) selected SSAB’s proposed project to build a hydrogen-fueled zero-emissions steelmaking facility to move forward with awards negotiations in DOE’s Industrial Demonstrations Program. Funds from the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) would be used to provide a grant of up to $500 million for the project.
If awarded the grant, SSAB would construct a green Hybrit ironmaking facility in Perry County, Miss. The Hydrogen Breakthrough Ironmaking Technology (Hybrit) process uses hydrogen gas to replace coke in the reduction of iron ore resulting in the emission of water rather than carbon dioxide. The plant would therefore produce fossil-fuel-free iron by using green hydrogen instead of fossil fuels.
The only other facility currently using Hybrit technology is SSAB’s plant in Luleå, Sweden. LKAB, SSAB’s Hybrit partner, “is planning to build an industrial-scale Hybrit plant in Gällivare in northern Sweden in the coming years,” an SSAB spokeswoman told SMU in an email.
The spokeswoman said the company is “now entering negotiations with funding officials to develop a shared understanding of the scope of the project, the budget, and additional requirements.” She said additional details on the plant’s specifics will be available once the negotiations are underway.
“This is a funding application to examine a possible solution for decarbonization acceleration. We are now entering a phase of deepened investigations of what makes sense commercially, technically, and financially, and we will also discuss this with DOE during the awards negotiations,” she explained.
“We are pleased to have our project selected by the DOE for negotiations to accelerate decarbonization of the iron and steel sector,” commented Chuck Schmitt, president of SSAB America, in a statement on Monday.
“We see a great interest in sustainable products from the market, and this project offers a critical opportunity to solidify a first-mover advantage for the US industry,” he added.
Potential expansion at Iowa plate mill
SSAB’s grant proposal also explores the possibility of expanding production capacity at its steelmaking operations in Montpelier, Iowa. This would include the increased use of renewable energy, SSAB said.
While the company is still evaluating its options for the Iowa facility, “Clearly there is a growing demand for heavy plate products coming from the infrastructure, energy, and general manufacturing sectors,” the spokeswoman commented.
She added that additional investments would also be needed to increase the company’s use of Hybrit DRI, recycled scrap, and biofuels in its steelmaking process.

Laura Miller
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