Brussels (Brussels Morning Newspaper) – The EU Commission endorsed a €128 million Swedish State aid measure to fund SSAB in decarbonising its steel production.
The European Commission has authorised, under EU State aid regulations, a €128 million Swedish measure to back SSAB in decarbonising its steel production. SSAB is a Swedish company, started in 1978, that specialises in producing steel.
The measure will contribute to the accomplishment of the European Green Deal and the Green Deal Industrial Plan targets, while also assisting to end dependence on Russian fossil fuels and accelerate the green transition, in line with the REPowerEU Plan.
As reported by the EU Commission, Sweden notified the Commission of a €128 million measure to support SSAB’s scheme to transition from the current coal-based steel production process in Luleå to a nearly zero-emission system.
What are the particulars of the project?
According to the EU Commission, the aid will fund the accelerated transition to an electric steel mill via the installation of an electric arc furnace, tools for secondary metallurgy and a caster. The electric arc furnace will function using steel scrap and direct concentrated iron produced using renewable hydrogen. The electric steel mill will have an accommodation of 2.5 million tonnes of green slabs per year.
Moreover, the measure will accelerate the task by three years and the new facility is envisioned to start producing green steel as of 2029. The measure qualifies for significant CO2 emission savings corresponding to three years of operation using fossil fuels. SSAB has been dedicated to actively sharing the experience and technical know-how gained via the project with industry and academia.
Why did the commission approve aid and how it will support the EU Green Deal?
The EU Commission evaluated the measure under EU State aid rules and found that the measure encourages the development of economic activity, namely steel production through low-carbon processes. At the same time, it reinforces the objectives of key EU policy initiatives such as the European Green Deal, the Green Deal Industrial Plan and the REPowerEU Plan.
Also, the measure is essential and appropriate to promote the production of green steel. In addition, it is proportional, as the level of the aid corresponds to the effective financing needs.
The measure has adequate safeguards to ensure that undue distortions of competition are limited. The aid brings about favourable effects that outweigh any potential distortion of competition and trade in the EU. As a result, on this basis, the Commission authorised the Swedish measure under EU State aid rules.
