Sweden’s leading steelmaker SSAB has begun the transition toward producing fossil-free “green steel,” marking a notable shift in heavy industry toward low-carbon manufacturing. 

The company is replacing traditional blast furnace processes at its Luleå plant in northern Sweden with a new compact electric arc furnace that uses fossil-free electricity instead of coal and coke.

The move is part of SSAB’s broader strategy to phase out conventional coal-based steelmaking and cut carbon emissions. The new facility is expected to be operational by 2029, with the aim of producing environmentally friendly steel in line with European goals for carbon neutrality by 2050.

Industry officials say this shift could help reduce Sweden’s overall CO2 emissions and position the country as a leader in sustainable steel production.