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BUSINESS

Faroe Islands restrict Russian access to its ports

Denmark's autonomous Faroe Islands said on Thursday that Russian access to its North Atlantic ports would be restricted to vessels dedicated exclusively to fishing, in response to Russia's invasion of Ukraine.

Faroe Islands restrict Russian access to its ports
Russian ships use the Faroe Islands to offload fish, get repairs, and change crew members. Photo: Ida Marie Odgaard/Ritzau Scanpix

“Only fishing vessels exclusively conducting fisheries under the bilateral agreement between the Faroe Islands and Russia will be allowed to enter
Faroese ports,” the government said.

“The activities of Russian fishing vessels in port will be restricted to crew change, bunkering, provisioning, landing and transshipment.”

Maintenance services will be prohibited and the purchase of goods restricted.

The Faroese government is trying to reduce Russian activities at its ports due to the risk of espionage and following criticism over the renewal of the bilateral fisheries accord at the end of November.

The agreement, renewed annually since 1977, lays out quotas on several species — including cod, haddock, whiting and herring — in the Barents Sea for Faroese fishermen and off the Faroe Islands for Russians.

According to the fisheries ministry, the fish caught under the accord accounts for five percent of gross domestic product.

Home to some 54,000 inhabitants and located between Scotland and Iceland, the Faroe Islands have been largely autonomous from Denmark since 1948.

They are highly dependent on fishing and have an autonomous commercial policy.

Russia has become a key commercial partner of the Faroes since they and neighbouring Iceland fell out with the European Union — including Denmark — between 2010 and 2014 over mackerel and herring quotas.

An EU embargo on Faroese fish harmed the economy of the territory, which then turned to other markets.

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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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