SSAB has made significant progress in the application process with the U.S. Department of Energy for funding up to $500 million. This funding could enable the construction of a HYBRIT® facility in Montpelier, Iowa, capable of producing carbon-neutral iron sponge using green hydrogen instead of fossil fuels. Additionally, the project will explore expanding capacity and incorporating renewable energy sources at the steel plant.
Chuck Schmitt, head of SSAB Americas, expressed enthusiasm about the project’s selection for grant negotiations, highlighting the market’s growing demand for sustainable products. This initiative aligns with American industrial benefits and supports U.S. goals for transitioning to renewable energy, complementing legislative efforts such as the Bipartisan Infrastructure Law and the Inflation Reduction Act.
In January 2022, SSAB’s board made a strategic decision to transition its Swedish and Finnish production systems to carbon-neutral steel manufacturing. Since 2021, SSAB has begun delivering small quantities of fossil-free steel produced from green iron sponge at the HYBRIT pilot plant in Northern Sweden. In 2023, SSAB introduced SSAB Zero, a product made from recycled steel scrap using green energy, nearly eliminating CO2 emissions in the process.
