ABB Wins Major Electrification Contract for SSAB’s New Fossil-Free Steel Facility in Luleå, Sweden

manfuacturing-news

ABB has signed a significant agreement with SSAB to deliver the complete electrical infrastructure for the steelmaker’s new fossil-free mini-mill in Luleå, Sweden. The contract covers the engineering, supply, installation, and commissioning of the plant’s main power distribution network, ensuring dependable energy delivery to all parts of the site. The new facility marks a critical milestone in SSAB’s transition toward coal-free steel production.

Set to replace SSAB’s existing operations in Luleå, the upcoming plant will begin producing fossil-free steel by the end of 2029. Once operational, the site is expected to cut carbon dioxide emissions by approximately 2.8 million tonnes per year—a reduction of around 90 percent compared with the current production process. This single project is estimated to lower Sweden’s total CO₂ emissions by up to 7 percent, reinforcing the nation’s role as a global leader in sustainable industrial transformation.

Under the agreement, ABB will execute its scope between 2025 and 2028, establishing the electrical foundation for the new generation of fossil-free steelmaking. The project includes complete electrical design, along with the delivery of medium- and low-voltage systems, distribution transformers, uninterruptible power supplies (UPS), DC systems, backup power, automation-based power control, and monitoring solutions. Acting as a single-source partner, ABB will oversee every stage—from system design through to final commissioning.

A stable and resilient electrical network is essential for SSAB’s transformation, as the new mill will rely on energy-intensive technologies such as electric arc furnaces. ABB’s involvement began early, during the conceptual and feasibility phases, to ensure a robust design that maintains consistent power flow from the grid to all process areas. This collaboration provides the technical backbone required to replace coal-based production methods with fully electrified operations.

“ABB has been a trusted partner for SSAB for many years, and this project continues our long-standing collaboration,” said Carl Orrling, Chief Technology Officer and Head of Transformation Office at SSAB. “At Luleå, ABB will take full responsibility for designing, delivering, and commissioning our main electrical systems. Their ability to combine international expertise with strong local presence was a key factor in our decision. With this new infrastructure, we will achieve lower costs, shorter production lead times, and a more flexible operation. Most importantly, the closure of our current facility will virtually eliminate our CO₂ emissions in Luleå.”

Frederik Esterhuizen, Global Business Line Manager for Metals and Power Conversion at ABB Process Industries, added, “Reliable electrification is the cornerstone of fossil-free steelmaking. From the initial concept phase, we have worked side by side with SSAB to create an electrical framework that not only meets today’s requirements but also supports future innovation. This integrated approach ensures that every part of the new mill will receive stable, efficient power, enabling SSAB’s move away from coal-based production.” The partnership strengthens ABB’s long relationship with SSAB and underlines ABB’s broader commitment to helping the global metals sector decarbonize and modernize through advanced electrification and automation technologies.

ABB is a global technology company driving progress in electrification and automation to create a more resource-efficient and sustainable future. With over 140 years of innovation and around 110,000 employees worldwide, ABB combines digital expertise and engineering excellence to help industries operate with greater efficiency, productivity, and environmental performance. The company’s shares trade on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB).

ABB Process Automation provides automation, electrification, and digital solutions for key industries including energy, water, materials, and transportation. With a workforce of approximately 20,000 professionals, the business supports process, hybrid, and maritime industries in running leaner, cleaner, and more resilient operations.