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ABB secures major plant electrification contract with SSAB’s new fossil-free steel mill in Sweden

| By Mary Bailey

ABB, Inc. (Zurich, Switzerland) has been awarded a contract by SSAB (Stockholm, Sweden) to deliver the main electrical infrastructure for the steelmaker’s new fossil-free mini-mill in Luleå, Sweden. The order includes the design, supply, installation and commissioning of the main power distribution, ensuring reliable delivery of electricity across all areas of the new site. The project represents a major step in SSAB’s transformation to fossil-free steel production.

The new facility will replace SSAB’s existing steelmaking operations in Luleå, with the production of fossil-free steel scheduled to start at the end of 2029. Once operational, SSAB estimates that the site is expected to reduce CO2 emissions by 2.8 million tons annually, equivalent to a 90 percent reduction compared to current operations. This is projected to contribute to Sweden’s CO₂ emissions reduction by 7 percent.

 The SSAB Luleå site in northern Sweden will be transformed for first steel production in 2029. Image SSAB

The SSAB Luleå site in northern Sweden will be transformed for first steel production in 2029. Image: SSAB

ABB deliverables between 2025 and 2028 will provide the foundation for fossil-free steelmaking at the site with the facilitation of a stable, efficient and future ready electrical system. The scope includes full electrical design services as well as the supply of medium and low voltage equipment, distribution transformers, UPS systems, DC distribution, backup power systems, automation power control and monitoring system. ABB will also be responsible for installation and commissioning, acting as a single supplier for the entire project.

Reliable power distribution is central to SSAB’s transformation, with the new mill set to use energy-intensive processes such as electric arc furnaces. ABB has been involved from the earliest stages, carrying out pre-studies and feasibility work to design a system that secures stable power flow from the grid to every part of the site, supporting the new energy demands set to be placed on the plant. This considered collaboration provides the foundation for replacing coal-based production and achieving fossil-free steelmaking at scale.

“ABB has been a long-term key supplier to SSAB for decades. With this agreement we will continue this journey in the future. At our Luleå mill, ABB will take full responsibility for the design, supply and commissioning of the main electrical infrastructure,” said Carl Orrling, Chief Technology Officer and Head of Transformation Office at SSAB. “Their early involvement and ability to combine global expertise with a strong local presence were key factors in our decision. With the new technology, we can achieve lower costs, shorter lead times and a better ability to handle variations in demand. When we close the current production, we will largely eliminate our carbon dioxide emissions in Luleå.”

“Reliable electrification is at the heart of fossil-free steelmaking,” said Frederik Esterhuizen, Global Business Line Manager for Metals and Power Conversion at ABB’s Process Industries division. “From the earliest planning stages, we have worked closely with SSAB to design an electrical infrastructure that meets their needs today and supports their long-term transition. This close collaboration allows us to deliver a seamless package giving SSAB the confidence that every part of the mill will have the stable, efficient power needed to move away from coal-based production.”

The project builds on ABB’s long-standing collaboration with SSAB and underscores ABB’s role as a trusted partner in supporting the metals industry’s transition to more sustainable operations.