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ENVIRONMENT

Spanish businessmen go on trial over quake-linked offshore gas project

Two businessmen went on trial Monday over their involvement in a large offshore gas storage project blamed for causing hundreds of small earthquakes off Spain’s eastern coast in 2013.

A platform, part of the Castor Project, located in the Ebro Delta off the coast of Alcanar caused hundreds of small earthquakes. Photo: LLUIS GENE/AFP
A platform, part of the Castor Project, located in the Ebro Delta off the coast of Alcanar caused hundreds of small earthquakes. Photo: LLUIS GENE/AFP

Operations at the plant, a giant underwater storage facility in the Gulf of Valencia, were suspended in September 2013, just months after it opened, following several hundred quakes which experts said were likely linked to the gas pumping process.

Known as Project Castor, the plant was built to store gas in a depleted oil reservoir 1.7 kilometres (one mile) under the Mediterranean which would have been sent to Spain’s national grid by pipeline.

The trial opened on Monday at a court in the Valencia region, with the pair accused of “crimes against the environment” linked to the absence of exploratory studies on seismic activity in the area.

If convicted, they could face up to six years in prison, according to court documents seen by AFP.

Both are senior executives at Escal UGS, which is two-thirds owned by Spanish construction giant ACS. They were indicted in 2015.

A dozen environment ministry officials were also charged but the case against them was dropped after no evidence was found of irregularities in granting a permit for the project, which was funded by the European Investment Bank.

Owned and operated by Escal UGS, the plant was built with a capacity for 1.3 billion cubic metres of gas — enough to supply the Valencia region and its five million residents for three months.

But when work to pump in the gas started in June 2013, the quakes began, prompting protests by environmental groups and local residents, with the government suspending its operations in September of that year.

The court accused Escal UGS of not carrying out a study on seismic activity in the area and of delaying the suspension of gas-pumping activities even after the consequences were known, creating “a dangerous situation which was potentially catastrophic”.

At the time, Escal claimed that seismic activity in the area did not meet the threshold for requiring a study.

In 2014, the Spanish government paid out 1.35 billion euros ($1.57 billion) in compensation to Escal UGS for not being able to operate the facility although the payment was overturned by a court three years later.

In May 2017, the government announced the definitive closure of the plant after scientific studies concluded there was a probable link between the quakes and the storage plant.

The trial is expected to run until November 15th.

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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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