Pioneering the possible

The current COP26 negotiations are rightly drawing a lot of attention from all around the world. Ovako was invited to present its current developments in the areas of circularity and carbon dioxide reductions, in a panel discussion with Volvo Group, SSAB and DHL. In addition to this panel, we have also been involved in talks with many of our present partners as well as new potential partners we have gotten to know during discussions. COP26 is an impressive event with many relevant debates and important meetings. What we have felt is a growing understanding of the need for speed, the urgency of what needs to happen, but also real hope. Many industrial leaders that are stepping up to the challenge in a way we have not seen before. Ovako is proud to be a pioneer in such company during this event.

Catarina Rolfsdotter-Jansson leading interesting and important panel discussions between Göran Nyström EVP Marketing & Technology of Ovako, Martin Lundstedt CEO of Volvo Group, Martin Pei EVP & CTO of SSAB and Ian Clough MD Network Logistics and Transport of DHL Supply Chain

On the panel I was asked how we view the need for sector integration and new partnerships. My answer was that cross-industry collaboration is crucial to achieve rapid and substantial climate benefits. Our hydrogen concept is applicable to all companies that heat steel and the global potential is in excess of 300 million tonnes of CO2 reduction, with no need for storage or transport of hydrogen. It is cost-efficient, fast and scalable. The electrolyzers can be turned off and on, so this is a fast, powerful balancing asset for the power grid, allowing for more wind- and solar-based electricity. And, since we use large amounts of oxygen for other purposes, we can easily expand cost-efficient hydrogen production for third parties, like Volvo. This means that energy companies, trucking companies, local industry and communities all stand to gain from collaboration in a way we have never seen before. It’s a perfect example of what lies ahead in sector integration and new partnerships. And it will soon be a living reality in Hofors, a small town in mid Sweden, where indeed we “pioneer the possible”.

Challenges, risks and open innovation

Much of the discussions at COP 26 centered on the need to expand the availability of non-fossil electricity. This is an urgent challenge for all countries alike, and even though Sweden and Finland are well positioned, this is no time to drag our feet. We need to use all available avenues and wind seems the obvious choice. But while green electricity is obviously a challenge, it is also well recognized. And the more we can increase on the demand side then the more the supply side will need to follow. Beyond that, there are some other obstacles for concepts such as ours, as well as many other good ideas. A first challenge relates to Intellectual Property (IP) protection. This typically slows progress down, while of course it is also an incentive for new inventions. Ovako has chosen another path. We feel that in these unprecedented times there is also a need for new approaches. In our case we see our hydrogen concept as open innovation. Simply speaking, it belongs to the world and we hope

Ovako is very pleased to have secured the first financing needed with support from the Swedish Energy Agency, Volvo Group, Hitachi Energy, H2 Green Steel and Nel Hydrogen. We are also a founding member of what is called the Mid Sweden Hydrogen Valley. All of this serves as a prime example of what can be achieved when a common goal is in sight, to make fast progress in climate actions. The biggest risk now is lack of speed. The clock is indeed ticking. In many cases, such as for our concept, the technology is perfectly ready. It is only the funding that slows us down. One solution, that we will use as the first steel company to do this, is to place a climate surcharge on purchases to raise the funds for remaining investments. In this way, our approach becomes a partnership with our customers.

Looking forward

At Ovako we have made a pledge that we call “Carbon Neutral Now”. It is a reminder that, despite our leading position, we need to take the final steps towards zero carbon emissions and that the speed of transformation is essential. Recognizing that the clock is ticking, at Ovako we go 100% carbon-neutral in our operations from January 1, 2022. We have joined the Science Based Targets initiative (SBTi) to halt global temperature rise to 1.5°C and will surely be well ahead of the target ambitions. We believe and hope that this will become a business model that will apply across industry. The cost of buying products with high CO2 emissions is too low today. The most important outcome of the discussions here in Glasgow is to truly put the priority on projects that are best positioned for the:

machining guidelines can help optimize the set up for machining operations.
In our second webinar, Emil Svensson, Business Developer at Ovako SmeBox and Patrik Ölund, Head of Group R&D, will explain the four main wear mechanisms and how they combine in the field. They will go on to introduce the Ovako Wear Index 2.0.
In our third webinar Patrik Ölund will explain the quantification of clean steel and it’s dramatic influence on the fatigue life of critical components. Date will be announced shortly.

The webinars will be held on November 17 and November 24, 2021, 15.00-16.00 CET. Please click below to accept your invitation.