In a groundbreaking development, FerroSilva has successfully pioneered a revolutionary process for manufacturing fossil-free sponge iron, in partnership with esteemed institutions such as KTH Royal Institute of Technology and Chalmers University of Technology. Additional collaborators include Sveaskog and Ovako. The company's visionary approach aims to establish a factory with a production capacity of 50,000 tons of fossil-free sponge iron per year, expected to be operational by 2026.

Representatives of FerroSilva, in an opinion piece published in Dagens Industri, shed light on their game-changing process. Unlike hydrogen-based initiatives, which are known to consume substantial electricity, FerroSilva's method utilizes forest residues for gasification, resulting in significantly reduced energy requirements. The company's calculations indicate that their approach surpasses other current European initiatives in terms of cost-effectiveness.

FerroSilva's pioneering process has attracted attention due to its suitability for countries with abundant biomass resources and limited electricity infrastructure. Notably, the company's method does not necessitate extensive electricity grid expansion. As an added environmental benefit, the process yields sponge iron with negative carbon dioxide emissions, representing a significant step toward sustainable steel production.

Plans are underway to initiate construction at Ovako's Hofors plant for FerroSilva's inaugural factory. Anticipated to commence operations in 2026, the facility will focus on producing 50,000 tons of fossil-free sponge iron annually. Furthermore, the energy-efficient process generates valuable byproducts like biochar and captured biogenic carbon dioxide, which can be utilized in various industrial applications, including the production of electrofuels.

FerroSilva has secured critical agreements to support its ambitious endeavors. Letters of intent are in place with Sveaskog for the supply of input materials, while Ovako has provided land use and entered into an offtake agreement for a portion of the future fossil-free sponge iron production. Additionally, letters of intent have been established with OX2 and Linde for the utilization of liquid biogenic carbon dioxide derived from FerroSilva's forthcoming production.

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