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BUSINESS

Denmark plans man-made islands to draw business

Denmark plans to build nine artificial islands in southern Copenhagen in a bid to attract businesses, the government announced on Monday, amid a housing and office space shortage.

Denmark plans man-made islands to draw business
An illustration shows the proposed construction of nine islands at Avedøre Holme. Photo: Ministry of Economic and Business Affairs/Handout via REUTERS/Ritzau Scanpix

The government and Hvidovre Municipality announced the plan, which will see an extension of the Avedøre Holme area south of the Danish capital, creating nine new islands to be given the collective name Holmene.

The primary purpose of the new islands will be to create industrial opportunity.

“We're targetting high-tech companies but there's always a need for the production of products we use in our daily lives too,” Industry and Business Minister Rasmus Jarlov told Ritzau.

Minister for Employment Troels Lund Poulsen called the project “visionary” and said it had the whole-hearted backing of the government.

“This will help to even better connect Copenhagen with the regions to its west and to the rest of Zealand. Copenhagen and the surrounding municipalities are an important driver of growth for the whole of Denmark,” Poulsen said to Ritzau.

Construction on the nine islands is scheduled to begin in 2022, covering an area of three million square metres and adding 17 kilometres to Denmark’s coastline.


An illustration shows the proposed nine islands at the Avedøre Holme coast. Photo: Ministry of Economic and Business Affairs/Handout via REUTERS/Ritzau Scanpix

The first plots of land will be sold in 2028 and the project, the financial details of which have not been disclosed, should be completed by 2040.

The aim is to attract some 380 companies to the area, located near Copenhagen airport.

“I think this could become a sort of European Silicon Valley,” the head of the Danish Chamber of Commerce, Brian Mikkelsen, told TV2 television.

The mammoth project follows another major infrastructure initiative announced last autumn, whereby 20,000 new homes will be built on a polder — low-lying land reclaimed from the sea — north of the capital.

That development, given the name Lynetteholmen, will rise from the Øresund waters between the Refshaleøen and Nordhavn areas and create homes for 35,000 people.

READ ALSO: Copenhagen to get artificial island and harbour tunnel in ambitious 50-year plan

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.

READ ALSO: 

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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