Commission approves €128 million Swedish state aid measure to support SSAB in decarbonising its steel production

The European Commission has approved, under EU state aid rules, a €128 million Swedish measure to support SSAB in decarbonizing its steel production. The measure will contribute to the achievement of the European Green Deal and the Green Deal Industrial Plan targets, while also helping to end dependence on Russian fossil fuels and accelerate the green transition, in line with the REPowerEU Plan.

Sweden notified to the Commission a €128m measure to support SSAB’s project to transition from the current coal-based steel production process in Luleå to a nearly zero-emission system. The measure will be made available through the Just Transition Fund. The aid will take the form of a direct grant and will support the accelerated transition to an electric steel mill through the installation of an electric arc furnace, equipment for secondary metallurgy and a caster. The electric arc furnace will operate using steel scrap and direct reduced iron produced using renewable hydrogen.

The measure will accelerate the project by three years and the new installation is envisioned to start producing green steel as of 2029. The measure allows for significant CO₂ emission savings corresponding to three years of operation using fossil fuels.

Executive Vice President Margrethe Vestager (pictured), in charge of competition policy, said: “This €128 million measure enables Sweden to help SSAB accelerate its switch to electrified steelmaking at its steel plant in the Norrbotten region. This will contribute to the greening of the steel value chain, in line with the EU’s target of climate neutrality by 2050. At the same time, the measure ensures that competition is not distorted.”

A press release is available online.

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