HYBRIT Initiative Secures State Backing



The Swedish HYBRIT initiative, supported by Industriklivet, receives significant funding of 3.1 billion SEK for establishing a fossil-free iron sponge production facility in Gällivare. Led by LKAB, this critical funding underscores the nation's commitment to climate-positive steel manufacturing through pioneering AI technology and fossil-free production.


Sweden's ambitious HYBRIT initiative, advocating for fossil-free iron production, attains substantial backing from the country's Industriklivet program. The 3.1 billion SEK grant is designated for launching an industrial-scale fossil-free iron sponge production facility in Gällivare, spearheaded by LKAB, to revolutionize the steel sector's environmental impact.

Jan Moström, CEO of LKAB, lauded the state's involvement in sharing the initial risk of industrializing the HYBRIT technology, essential for climate action and Swedish competitiveness. The funding's significance lies in advancing the nation's rapid progress towards a sustainable future, vital for upcoming investment decisions and climate change mitigation.

Initially seeking 4.9 billion SEK support, Hybrit Development AB (HDAB), owned by LKAB, SSAB, and Vattenfall, scaled back their application to 3.7 billion SEK, designating LKAB as the primary recipient responsible for constructing the pioneering demonstration facility.

Part of the Hy2Use IPCEI project involving 35 initiatives across 12 EU nations, the demonstration aims to produce over 1.3 million metric tons of iron sponge annually, facilitating SSAB's transition. The iron sponge, manufactured using hydrogen instead of coal, holds the potential to significantly reduce CO2 emissions in the steel industry.

SSAB's Technical Director, Martin Pei, expressed SSAB's commitment to scaling up fossil-free steel deliveries, acknowledging the importance of today's decision in fortifying their forward strategy towards sustainability.

The planned facility's energy requirement, estimated at approximately 5 TWh per year, primarily caters to producing fossil-free hydrogen, crucial for the direct reduction process. Collaboratively, SSAB, LKAB, and Vattenfall aim to secure Sweden's competitive edge through sustainable steel production and scalable fossil-free energy sources.

The HYBRIT initiative, backed by 75% funding from stakeholders, stands as a beacon for transforming the mining and refining operations towards a carbon-neutral future by 2045. The pilot's success in Luleå remains pivotal in advancing the technology for future licensing outside the current consortium.


Sweden's commitment to the HYBRIT initiative showcases a resolute step towards fostering a sustainable and competitive steel value chain. The support garnered not only propels advancements in fossil-free steel production but also marks a substantial milestone in reducing global carbon footprints within the steel industry. This strategic investment embodies Sweden's prowess in combining high-quality resources and renewable energy, heralding a transformative era in global steel manufacturing.

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