Norwegian startup Blastr has announced plans to build a €4bn ($4.24bn) green steel and integrated hydrogen production facility in Finland.

Blastr plans to replace coke and coal with hydrogen in the chemical reduction phase, in addition to reducing emissions throughout the value chain, with a target of 95pc lower CO₂ emissions compared with conventional steel manufacturing. The firm plans to produce 2.5mn t/yr of hot- and cold-rolled green steel at the plant, with first production in 2026.

The firm has signed a letter of intent with energy company Fortum providing exclusive rights to utilise an existing industrial site near the port of Inkoo.

“Inkoo was selected as our location due to its high-quality infrastructure and access to clean power. In addition, the ice-free deep-sea harbour enables efficient, low-carbon logistics all year round and close access to the European market,” says Hans Fredrik Wittusen, CEO of Blastr.

€4bn – Planned investment in Blastr green steel plant

Demand for decarbonised steel in Europe is expected to reach 50mn t/yr by 2030—one-third of the continent’s current steel demand.

Blastr, founded in 2021 and backed by investment company Vanir Green Industries, adds to a growing roster of Nordic companies exploring green steel production.

Sweden’s H2 Green Steel aims to start up its first 2.5mn t/yr green steel plant in the north of the country by 2025, with plans for a potential 5mn t/yr plant in Brazil in the latter half of this decade.

Meanwhile, fellow Swedish firm Hybrit, a joint venture between steelmaker SSAB, iron ore producer LKAB and utility Vattenfall, delivered the first ‘fossil-free’ steel to a customer in mid-2021. Hybrit also claims that hydrogen-reduced iron produced using its technology is highly metallised and has superior mechanical and ageing properties compared with direct-reduced iron using natural gas—making it easier to handle, transport and store.

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Author: Polly Martin