Steel company SSAB has selected AFRY as its main engineering partner for a fossil-free steel mini-mill project in Luleå, Sweden.

The partnership is a significant step towards SSAB's transition to fossil-free steel production.

AFRY will be responsible for both basic and detailed engineering services from 2024 to 2026.

This steel project aims to replace the traditional blast furnace route with a cutting-edge mini-mill concept using electric arc furnaces (EAFs).

The mini-mill is expected to produce 2.5mtpa of fossil-free steel.

Upon completion, SSAB plans to shut down the existing blast furnace facility in Luleå, which is expected to cut Sweden's annual CO₂ emissions by 7%, adding to the 3% reduction from the Oxelösund mill conversion.

AFRY's responsibilities will extend to the melting and hot rolling complex, covering comprehensive multi-disciplinary basic and detailed engineering.

This complex will feature EAFs, secondary metallurgy, thin slab casting, hot rolling, and the necessary infrastructure and auxiliary services.

The new production line is scheduled to be commissioned at the end of 2028.

AFRY executive vice-president and head of process industries Nicholas Oksanen said: "We are proud to continue our strong partnership with SSAB on this important green transformation project aimed at decarbonising steel production.

“The unique combination of AFRY’s local and global expertise as well as our deep knowledge of SSAB’s projects will ensure a high-quality and efficient project delivery from AFRY.”

Last year, Sandvik Mining and Rock Solutions signed a letter of intent with SSAB for the supply of fossil-free steel.

SSAB is planning to start commercial-scale delivery of fossil-free steel to the market during 2026.