Blastr Green Steel plans to invest in an iron ore pellet plant in the municipality of Gildeskål in northern Norway. The plant will supply the companies recently announced green steel mill in Inkoo, Finland.
"The world needs huge amounts of steel. However, traditional coal-based processes make steel production one of the main sources of greenhouse gas emissions. The steel industry is responsible for about 8 percent of global CO2 emissions, as the production of one ton of steel generates about 2 tons of CO2. Decarbonization of steel production is an important factor in the green transition," explains Hans Fredrik Wittusen, CEO of Blastr Green Steel.
Gildeskål plant
The planned Gildeskål plant will produce high-quality direct reduction pellets from iron ore pellets, which will be used as raw material to produce green steel. The energy required for the process will be generated from hydropower, and Blastr is currently in discussions regarding long-term power contracts. The location is considered advantageous as it offers an ice-free port with easy access to iron ore from the Norwegian Sea.
Once operational, the plant will create 120 jobs and have significant indirect employment opportunities and economic impact on the community and the region. The investment in Gildeskål is estimated at more than EUR 1 billion.
Major project for green steel
The pellet plant in Gildeskål will supply raw materials for Blastr's planned green steel mill in Inkoo, Finland, where coal will be replaced by green hydrogen in steel production. Overall, this will be one of the largest industrial projects in Scandinavia. The pellets from the Gildeskål plant will be an important part of Blastr's green steel value chain, which aims to reduce CO2 emissions in steel production by 95 percent.
"Our planned pellet plant in Gildeskål will supply both Blastr's production of low-carbon steel in Finland and a significant and growing global market for direct reduction pellets. Therefore, this project will make an important contribution to the decarbonization of global steel production," Wittusen said.
Subject to the relevant permits and agreements, a final investment decision is expected in 2025. In 2028, the plant is expected to start production.
