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COP 21 PARIS

ENVIRONMENT

‘We will continue with oil and gas’: Norway PM

Norway’s prime minister has dismissed calls for an end to further offshore oil and gas exploration in her country, after nearly 200 countries signed a historic deal on Saturday to push for zero net emissions in the second half of the century.

'We will continue with oil and gas': Norway PM
Norwegian Prime Minister Erna Solberg with Fredric Hauge, co-founder of the Norwegian environmental group Bellona at the start of the Paris conference on November 30. Photo: Berit Roald / NTB scanpix
“We’re going to continue with oil and gas,” Erna Solberg said on Sunday, in comments echoed both by her Progress Party coalition partners and the Labour Party opposition. 
 
Norwegian environmentalists on Saturday and Sunday called for a dramatic halt to new oil and gas activity in the wake of the Paris agreement. 
 
“Parliament should cancel the entire 23rd licensing round and stop exploration for new oil and gas resources on the Norwegian shelf,” the Green Party MP and spokesman Rasmus Hansson declared in a call that was backed by the country’s Socialist Left Party. 
 
Trine Skei Grande, leader of the minority Liberal Party said that the Paris deal should push Norway to shelve plans to open up the picturesque Lofoten islands to exploration, a prospect which has generated strong opposition in the country. 
 
“The goal of limiting the temperature rise to 1.5 degrees means that all Norway's plans for oil and gas need to be revised,” she told Norway's Dagbladet tabloid.  Opening up new fields in Lofoten and Vesterålen for the extraction of oil and gas would be luring the industry to make investments that will never pay off.” 
 
“One of the first thing we must do is to cancel oil drilling in the Arctic,” said Lars Haltbrekken from the Norwegian Society for the Conservation of Nature. 
 
“There is absolutely no room for Norwegian oil from the Barents Sea or Norwegian gas much beyond 2040 in a 1.5C scenario,” Truls Gulowsen, from Greenpeace Norway said. 
 
Jonas Gahr Støre, the leader of Norway’s Labour Party backed Solberg’s call for the upcoming licensing round to go ahead, arguing that the natural gas Norway supplies to Europe was helping to reduce carbon emissions by cutting consumption of coal. 
 
“It helps that Norway supplies gas to Europe. It is important to bring about a shift away from coal,” he said. “I have not seen any analysis that has shown that shutting down the Norwegian oil and gas industry will increase the use of renewable energy in Europe.” 
 
 
 
 

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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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