SSAB has announced that production at its new electric arc furnace (EAF) in Oxelösund is now expected to begin in the second quarter of 2027, following the withdrawal of all appeals related to the construction of the power line that will supply electricity to the facility.The development marks an important step forward in SSAB’s ongoing transformation toward fossil-free steel production. The company had earlier indicated that the commissioning schedule could be delayed after construction of the power line was suspended in April due to appeals connected to species protection issues during the permitting process.
With the appeals now withdrawn, Vattenfall Eldistribution has confirmed that work on the power connection will resume, allowing the project to move forward according to the revised timeline. The power line is a critical part of the infrastructure required to operate the new electric arc furnace and support SSAB’s transition to more sustainable steel manufacturing.
The new EAF forms a central component of SSAB’s long-term strategy to reduce carbon emissions while increasing the production of decarbonized steel for customers across global markets. Once operational, the facility will replace traditional blast furnace-based steelmaking with an electricity-powered process that significantly lowers greenhouse gas emissions and supports the growing demand for sustainable steel products.
Commenting on the latest development, Johnny Sjöström, President and CEO of SSAB, said, “We welcome the news that all appeals have been withdrawn. The power connection is a key component of SSAB’s investment, enabling us to deliver increased volumes of decarbonized steel to our customers. In addition, the transformation in Oxelösund will reduce Sweden’s carbon dioxide emissions by around three percent.”
The Oxelösund transformation is regarded as one of Sweden’s most significant industrial decarbonization projects and is expected to make a meaningful contribution to the country’s climate objectives. By replacing conventional steel production methods with electric arc furnace technology powered by low-carbon electricity, SSAB aims to substantially reduce emissions while strengthening its position as a supplier of high-quality, low-carbon steel.
The company noted that the permitting process also underscores the importance of better coordination among stakeholders involved in large-scale infrastructure and industrial projects. Early alignment between regulatory authorities, infrastructure providers and project developers can help address environmental considerations while minimizing delays that affect nationally significant investments.
As construction activities resume, SSAB will continue advancing the Oxelösund project in line with its broader sustainability roadmap. The investment reflects the company’s commitment to accelerating the transition toward cleaner steel production, supporting customers in reducing their carbon footprint, and contributing to a more sustainable industrial future. With the power infrastructure now back on schedule, SSAB expects the new electric arc furnace to become operational in the second quarter of 2027, marking another milestone in its transformation toward fossil-free steelmaking.
