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ENVIRONMENT

Social Democrats slam Nord Stream approval

Sweden’s decision to allow the Russian-led Nord Stream gas pipeline to pass through its territorial waters has prompted a scathing response from the political opposition.

Social Democrats slam Nord Stream approval

“The pipeline is not in Sweden’s interests, especially considering the project’s far-reaching consequences on the environment,” Urban Ahlin and Anders Ygeman, two prominent Social Democrats, said in an open letter published in the Svenska Dagbladet (SvD) newspaper Friday.

“But it is undoubtedly in Russia’s interests,” they wrote, stressing the timing of the decision “suggests that the Swedish government has in a way” given in to Russia’s “expressions of discontent.”

Ahlin, who serves as the Social Democrats’ foreign affairs spokesperson, and Ygeman who chairs the Riksdag’s environmental committee, said approval of the project amounts to “selling out Swedish environmental interests to the benefit of Russian gas”.

Sweden’s approval came two weeks before an EU-Russia summit to take place in Stockholm and resolved what had become a dispute between Stockholm and Moscow.

The Scandinavian country currently holds the rotating EU presidency.

After years of procrastination, Sweden and Finland gave breakthrough approvals to Nord Stream Thursday, allowing the pipeline to pass through their waters in the Baltic Sea, a crucial step for the project destined to supply Europe with Russian gas.

The $7.4 billion Nord Stream project, which is led by Russian state-run energy giant Gazprom in partnership with Germany’s E.On Ruhrgas and BASF-Wintershall, will run under the Baltic Sea to bring gas from Russia to the European Union.

The pipeline will link the Russian city of Vyborg and Greifswald in Germany over a distance of 1,220 kilometres, going under the Baltic Sea and passing through Russian, Finnish, Swedish, Danish and German waters.

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ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

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The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

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