Blastr Links Green Steel Venture to Norway

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Norwegian company Blastr Green Steel is backing up its plans for a major green steel plant in neighboring Finland by revealing plans to invest more than US$1 billion in an iron ore pellet plant in the Gildeskal municipality in northern Norway.

The company said the pellet plant will supply its planned US$4 billion green steel project in Inkoo, Finland. The facility in Gildeskal will convert iron ore pellet feed into high-quality direct reduction pellets, which are used as raw material for green steel production. The power needed for the process will be based on hydropower, and Blastr is in discussions about long-term power contracts. The location was chosen in part for the area's ice-free harbor that offers easy access to seaborne iron ore from the Norwegian Sea.

"Our planned pellet plant in Gildeskål will supply Blastr's production of low-carbon steel in Finland as well as a significant and growing world market for direct reduction pellets. Therefore, this project will be an important contributor to decarbonizing global steel production," said Hans Fredrik Wittusen, chief executive officer of Blastr Green Steel. "The world needs massive amounts of steel. However, the traditional coal-based processes make steel production one of the main sources of greenhouse gas emissions. The steel industry accounts for about 8% of global CO2 emissions, as one ton of steel produced creates around 2 tons of CO2. The decarbonizing of steel production is a key enabler for the green transition."

Industrial Info is tracking the company's green steel project at Inkoo, to be located on the site of a demolished coal-fired plant owned by Finnish energy player Fortum Oyj (Espoo, Finland). The plant will aim to produce 2.5 million tons of high-quality hot- and cold-rolled green steel annually, with production estimated to begin by the end of 2026. It was welcomed by Finland's Minister of Economic Affairs Mika Lintilä: "We have worked on this project for a long time. Blastr´s decision to locate in Inkoo is a proof of the competitiveness of the Finnish industry and infrastructure. Finland is an excellent place for carbon-neutral industry and production of decarbonized steel: We have a strong and reliable electricity grid, good conditions for producing emission-free energy and efficient logistics."

European green steel projects have been emerging at an increased rate over the past couple of years. Industrial Info is tracking more than 20 green steel projects with a combined investment value of around US$11 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for the report.

Earlier this month, Industrial Info reported that Sweden's H2 Green Steel, which is aiming to build one of the region's largest green steel plants, had secured new, long-term offtake deals amounting to almost 2 billion euro (US$2.1 billion). The hydrogen-powered plant is under construction in Boden, located in the north of the country. It will be commissioned in 2024 with an estimated production capacity of 2.5 million tonnes of high-quality steel, ramping up to 5 million tonnes by 2030. For additional information, see May 8, 2023, article - Clean Steel Bonanza for Sweden's H2 Green Steel.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).