Raex® steel is manufactured by SSAB and sold through the global Raex® distribution network. The steel industry is currently one of the highest CO2 emitters, accounting for 7% of all emissions globally. Today, the CO2 efficiency level at our plants is one of the best in the world regardless of geography. But we are determined to continue our efforts to decarbonize the steel industry, and Raex is part of this goal. So far, SSAB is the only steel producer that has committed to and is investing in a completely fossil-free value chain including steel production. The first fossil-free steels will be commercially available to customers after 2026 and fully implemented in 2045.
According to forecasts, global steel consumption is set to increase over the next few decades. But just utilizing scrap and shifting to scrap-based production does not mean that the need of iron ore-based steel will decrease. While the steel recycling rate is an impressive 90% or so in many parts of the world, the steel scrap available meets just 25% of global demand. In fact, an estimated 50% of the steel produced by 2050 will still be manufactured from iron ore.
Fossil-free means that a product or service has been created without using fossil-fuels or fossil raw materials. The production of fossil-free steel leaves fossil fuels in the ground; this means that you and your end-users become part of a fossil-free value-chain. In turn, this means that when customers upgrade their steel plate and build a product, they can promote it as a fossil-free product. The Raex® product portfolio is part of this journey and will be available as fossil-free steel.
Together with our partners and customers, SSAB aims to create a fossil-free value chain, from the mine to the end-product.
In 2016, SSAB, LKAB (Europe’s largest iron ore producer) and Vattenfall (one of Europe’s largest energy companies) joined forces to create HYBRIT – an initiative that endeavors to revolutionize steelmaking. Using HYBRIT technology, SSAB aims to replace coking coal, traditionally needed for ore-based steelmaking, with fossil-free electricity and hydrogen. The result will be the world’s first fossil-free steelmaking technology, with virtually no carbon footprint. Our goal is to reduce Sweden’s CO2 emissions by 10% and Finland’s by 7%.
SSAB will cut its CO2 emissions in Sweden by 25% by as early as 2025, through the conversion of the blast furnaces in Oxelösund, Sweden, to an electric arc furnace. Between 2030-2040, the plan is to convert the blast furnaces in Luleå, Sweden and Raahe, Finland to eliminate most of the remaining CO2 emissions.