STOCKHOLM (dpa-AFX) - The European Commission announced that it has approved, under EU State aid rules, a 128 million euros Swedish measure to support Swedish steel giant SSAB AB in decarbonising its steel production.
The Commission noted that the measure would help in achieveing the European Green Deal and the Green Deal Industrial Plan targets. It would also help to end dependence on Russian fossil fuels and accelerate the green transition, in line with the REPowerEU Plan.
Sweden notified to the Commission the aid measure to support SSAB's project to transition from the current coal-based steel production process in Lulea in the Norrbotten region to a nearly zero-emission system. The measure will be made available through the Just Transition Fund.
The aid, as a direct grant, will support the accelerated transition to an electric steel mill through the installation of an electric arc furnace, equipment for secondary metallurgy and a caster. The electric arc furnace will operate using steel scrap and direct reduced iron produced using renewable hydrogen. The electric steel mill will have a capacity of 2.5 million tonnes of green slabs per year.
The Commission stated that the measure will accelerate the project by three years and the new installation is envisioned to start producing green steel as of 2029.
The measure allows for significant CO2 emission savings corresponding to three years of operation using fossil fuels.
Margrethe Vestager, Executive Vice-President in charge of competition policy, said, 'This €128 million measure enables Sweden to help SSAB accelerate its switch to electrified steelmaking at its steel plant in the Norrbotten region. This will contribute to the greening of the steel value chain, in line with the EU's target of climate neutrality by 2050. At the same time, the measure ensures that competition is not distorted.'
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