The European Commission has approved state aid of EUR 128 million (USD 138.8 million) to support Swedish steelmaker SSAB in its efforts to decarbonise production at its Luleå site.
SSAB plans to transition from its current coal-based steel production process to a nearly zero-emission system by establishing an electric steel mill capable of producing 2.5 million tonnes of green slabs annually.
The aid will be provided as a direct grant and will finance the installation of an electric arc furnace, secondary metallurgy equipment, and a caster. The electric arc furnace will utilize steel scrap and direct reduced iron produced using renewable hydrogen.
This state aid is expected to accelerate the project's timeline by three years, with the new mill scheduled to commence operations in 2029.
The initiative aligns with key EU objectives, including the European Green Deal established in 2019, which aims to achieve net zero emissions of greenhouse gases by 2050.
