Ovako said it plans to build on the success of its recent pilot project to heat steel with fossil-free hydrogen by preparing the first full-scale production installation at its Hofors mill in Sweden. Full implementation of hydrogen-fueled heating will further reduce process emissions by a total of 80% from the 2015 baseline – that is, an additional 50% from today’s already low levels.

"We want to be at the forefront of the transition towards a sustainable society with no carbon emissions. We are therefore initiating 100% carbon-neutral steel production from 2022. Ovako’s climate initiatives have, so far, contributed to a reduction of our carbon footprint by 55 % since 2015. Through our hydrogen heating initiative, we will drive that development further and support our customers in their journey to make their products more climate smart," said Marcus Hedblom, President and CEO of Ovako.

Beginning in January 2022, and until the goal is met, the company will counterbalance the remaining carbon emissions in production through carbon offsets. The use of offsets will gradually decrease as the company continues to invest in new technology and improve its processes.