Fortum and the steel company SSAB are launching a joint commercial feasibility study and technical front-end engineering design (FEED) study to explore the possibilities of producing H₂-reduced fossil-free sponge iron in Raahe, Finland. In line with its strategy, Fortum wants to drive the development of a H₂ economy in the Nordics together with its customers and partners. The study is estimated to be completed in the first quarter of 2024.

The now-launched study is a continuation to the ongoing joint research project “FFS - Towards Fossil-free Steel,” which began in February 2021 and has the support of Business Finland. Fortum is responsible for the H₂ study in this project.

Fortum will study the technical and commercial feasibility of a H₂ production plant with a maximum capacity of 700 megawatts. The study will also cover such questions as partnering and financial structures, as well as operations and safety. An environmental impact assessment process related to the production of H₂ will also be launched during the study.

Large-scale use of H₂ in industry is still at an early stage of development and therefore new projects will require wide-ranging research and cross-sectoral cooperation. The study results will be used as a basis for possible investment decisions at a later stage.