SSAB signs agreement with Norwegian company to supply fossil-free steel

Swedish steelmaker SSAB and Norway's largest producer and distributor Smith Stål signed a letter of intent on September 30 regarding the future supply of fossil fuel-free steel, SSAB said in a statement.

SSAB has developed two types of low-carbon steel - SSAB zero and SSAB fossil-free steel. SSAB zero is produced from recycled steel scrap using fossil fuel-free electricity and biogas, while SSAB fossil-free steel is produced from iron ore using HYBRIT technology, developed jointly by SSAB, iron ore producer LKAB and energy company Vattenfall.

The technology, which has been tested on a pilot scale, uses hydrogen produced with fossil fuel-free electricity to produce iron, a key raw material in steel production. It is expected to go on sale from 2026.

“We are delighted that in the future we will be able to supply fossil fuel-free SSAB steel to our customers in Norway,” said Eirik Berg, Director of Smith Stål. “As one of the top three Norwegian steel distributors, we feel strong demand for supplies to the industrial, construction and offshore segments.”

Smith Steel stocks plates, beams, hollow sections, tubes and bars and has its own service centers for value-added steel production.

“I am delighted to welcome Smith Stal as a fossil-free steel production partner, adding another distribution partner to our very important Norwegian market,” said Matts Nilsson, SSAB Head of Sales Sweden and Norway. “Together we are building a strong value chain for our Norwegian customers.”

The agreement between SSAB and Smith Steel is the fourth agreement signed by the steel company for future steel supplies in just two weeks.