The HYBRIT-initiative driven by Vattenfall, SSAB and LKAB has now officially received support from the European Union, as one of seven innovative projects under the Innovation Fund. The project receives in total EUR 143 million for an industrial and commercial-scale demonstration of a complete value chain for hydrogen-based iron and steelmaking, from mine to fossil-free steel. The grant consists of EUR 108 million o Hybrit Development AB for a demonstration of the hydrogen direct reduction process including fossil-free hydrogen production in Gällivare, a further EUR 30 million o SSAB for the demonstration of electric melting of hydrogen-based direct reduced iron in Oxelösund and finally EUR 5 million to LKAB for the demonstration of fossil-free DR-pellets production for the hydrogen reduction process. The grant agreement was signed by the parties at an official ceremony held in Stockholm in Sweden on 1 April 2022.HYBRIT is granted support to further advance the development towards eliminating emissions from iron and steel production by using fossil-free hydrogen for direct reduction of iron ore in the process. Going forward, the project will continue with proving the technical and commercial viability of the HYBRIT value chain, including1. A demonstration of the hydrogen direct reduction process including fossil-free hydrogen production in Gällivare in Sweden2. A demonstration of electric melting of hydrogen-based direct reduced iron3. A demonstration of fossil-free DR-pellets production for the hydrogen reduction processThe EU Innovation Fund is one of the world’s largest funding programs for the demonstration of innovative low-carbon technologies that help reduce greenhouse gas emissions. The European Union is in total investing more than EUR 1.1 billion in total in seven projects that cover a wide range of relevant sectors to decarbonize the European industry and energy sectors, such as chemicals, steel, cement, refineries, and power and heat. The HYBRIT demonstration project is the only iron- and steel project to have been granted support in the first Innovation Fund call for large-scale projects. The HYBRIT demonstration project will replace coal-based blast furnaces with direct hydrogen-based reduction technology. The HYBRIT initiative will demonstrate a complete industrial value chain for fossil-free hydrogen-based iron and steelmaking. The project will produce approximately 1.35 million tonnes hydrogen reduced iron annually, to be used for producing crude steel amounting to approximately 25% of Sweden’s total production. This will reduce greenhouse gas emissions by 14.3 million tonnes CO2 over the first 10 years of operation, according to the Innovation Fund calculation model.A new facility will be established for first-of-a-kind hydrogen-based direct reduction with 500 MW fossil-free electrolysis in Gällivare. Furthermore, SSAB will replace its blast furnaces by an electric furnace in Oxelösund.