Ovako adopts carbon-neutral steel production

We recently started an ambitious initiative to achieve full carbon neutrality across all Ovako’s operations. That was the project launch of our concept to heat steel with fossil-free hydrogen, supported by several industrial partners as well as the Swedish Energy Agency. We are convinced that this change is acutely needed to reduce greenhouse gas emissions. Our full-scale trials were successful, and the first full production installation will further prove the viability of the concept. Currently, through other initiatives, we have reduced our CO2 emissions by 55% from our 2015 baseline and full implementation of hydrogen-fueled heating will enable us to further reduce our process emissions by a total of 80% – that is, an additional 50% from their already low levels.

Our hydrogen investments to tackle climate change, complemented by several other actions, will be implemented just as quickly as we can in order to achieve zero carbon emission. However, we believe the climate situation is so urgent that the world cannot wait for operational improvements on their own. That is why, with effect from January 1, 2022, we have decided to sell products based solely on carbon-neutral steel production. To achieve this goal, we will buy Gold Standard offsets for our existing world-leading low carbon emissions – a need that will be gradually reduced as we further invest to improve our processes.

Carbon Neutral Now – your questions

Some customers have asked us why we have committed to sell products solely based on carbon-neutral steel production. The answer is that we believe that the climate situation is so severe that immediate action is required. That is why we will compensate for the remaining low carbon dioxide and ensuring that our operations become Carbon Neutral Now.

our hydrogen project. Another question is how we can prove to our customers that all emissions are included and that we are truly carbon neutral. To do this, all of our CO2 emissions will be verified on a regular basis by a third party, with calculations and collection of data carried out according to ISO14064-1 and the Greenhouse Gas Protocol. In addition, Ovako will of course still be part of the European Emission Allowance trading system. The offsets do not replace this.

What lies ahead of us

The next step and our first priority is the construction of our fossil-free hydrogen plant in Hofors that will make Ovako the first in the world to heat steel with hydrogen prior to rolling. This major step toward carbon-neutral steel production is expected to be completed by the end of 2022. The 20 MW plant will generate some 4.000 cubic meters of fossil-free hydrogen per hour. This project will also enable large-scale and cost-effective production of hydrogen for applications like fossil-free freight using fuel-cell trucks. It could also enable true electricity flexibility, which in turn will allow more renewable energy to be added to the grid. The full conversion to hydrogen will enable us to reduce CO2 emissions for steel production in Hofors by 50% from the already low levels. We then expect to build more capacity to be able to cover all our internal demands as well as supplying hydrogen to users outside Ovako. The long-term plan, by 2030, is for hydrogen heating to be used at all Ovako production units where we roll steel.

that make Hybrid steel so attractive. In this third and final webinar on Hybrid steel, we will learn about how Hybrid steel achieves its corrosion-resistant and impressive hydrogen resistance. Both Ovako and our customers continue to be excited about the remarkable properties that can be obtained from this steel.
This webinar is the third in a serie of three and it will be held on October 12, 2021, 15.00-16.00 CET. Please click below to accept the invitation to this webcast from our new Group R&D laboratory.