Swedish steelmaker SSAB is postponing the start of its new fossil-free steel mill in Luleå by one year, citing delays in reinforcing the local power grid.
The company said Wednesday that the planned commissioning of the new plant will be moved to the end of 2029 from its original target of late 2028.
According to the company, the delay stems from technical challenges faced by grid operator Svenska kraftnät in modernizing the transmission grid required to supply the new mill.
The Luleå project is a cornerstone of SSAB's strategy to decarbonize its operations, with the company previously stating the new facility would cut Sweden's total carbon dioxide emissions by 7%.
"The transformation of Luleå is a major step on our journey to fossil-free steel production," SSAB's President and CEO Martin Lindqvist said when the project was announced in April 2024.
SSAB confirmed the revised timeline does not affect the project's investment framework of 4.5 billion euros.
The company, which secured 2.3 billion euros in green financing for the project earlier this year, said it has initiated a dialogue with the grid operators to ensure a sustainable plan moving forward.
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