SSAB and ecosystem partners come together in building a sustainable world through steels

SSAB’s new Sustainable World through Steels (SWS) research and development programme aims to prepare the steel industry for a fundamental transformation. Co-funded by Business Finland, the programme brings together a wide group of industrial and research partners to develop the steelmaking processes, digital capabilities, end-use applications and circular solutions needed to enable fossil-free steel value chains. We interviewed SSAB’s Jarmo Lilja, the leader of the SWS R&D programme, for an overview of the programme.

A strategic programme for industrial transformation

Steel production is a major source of carbon dioxide emissions in Finland and worldwide. SSAB’s aim is to remove this challenge by replacing fossil-based production with electric processes and fossil-free energy sources. At the same time, the company is continuing to develop advanced ultra-high-strength steels (UHSS) that enable customers to use less material, build lighter structures and reduce emissions during product use.

This combination of a smaller carbon footprint and a larger carbon handprint is central to the program. Its scope extends across the value chain from raw materials and energy to production, downstream operations and end-use applications. The intention is to reduce Scope 1, 2 and 3 emissions and ensure that fossil-free steels retain the quality, performance and reliability customers require.

The planned transformation of Raahe steel mill illustrates the scale of the change. Existing rolling and downstream operations will remain, but steelmaking will move towards an electric arc furnace-based solution designed for greater flexibility and smaller production batches. Two new casting machines are planned to serve strip and plate rolling, and the mills will be modernised over time to meet future needs. Hydrogen-related solutions, increased use of recycled scrap and new raw materials are also part of the research agenda.

Four themes extending across the steel value chain

Theme 1: Solutions for fossil-free electric steelmaking develops solutions across the full production chain from raw materials and energy to downstream processes. Its goal is to enable fossil-free steelmaking without compromising product performance or quality. A newly launched FutSteel project linked to fossil-free energy applications, is already under way within this theme.

Theme 2: Optimisation and development of sustainable fossil-free steelmaking through digitalisation focuses on an energy-efficient, flexible and reliable production chain. New production control, maintenance and IT systems will use process data to manage changing raw materials and production conditions. Virtual manufacturing will make it possible to simulate changes, accelerate product development and improve quality.

Theme 3: Fossil-free steel applications and value chains in high volumes accelerates industrial adoption by co-developing advanced high-strength steel grades and end-use applications with Finnish and international partners. The work covers areas such as automotive manufacturing, engineering, marine applications, lifting and handling, transport equipment, construction and protection steels for resilience applications.

Theme 4: Steel mill circular material valorization seeks to maximise the value of steelmaking side streams. As production processes change, the properties of slag, dust and scale will also change. The first priority is to recycle these materials within SSAB’s own processes. Where this is not possible, the programme will explore new uses, particularly solutions for utilising EAF slag and dust in cement, construction and infrastructure.

Closer look on theme 1: Addressing the core process challenges

One priority is to replace natural gas in heating processes. Raahe steel mill currently uses approximately one terawatt-hour per year of energy to reheat steel slabs before rolling. Reducing this demand and introducing electric or other fossil-free heating solutions could deliver substantial emission and efficiency benefits, all while aiming to make use of existing furnaces where possible.

Another key research area is slag foaming in the electric arc furnace. Slag foaming improves productivity and energy efficiency, but conventional methods rely on fossil coal or coke fines. The programme is therefore investigating new, more sustainable approaches such as biocarbon. This creates opportunities for collaboration with the forest industry. Refractory materials and their heating is also a critical issue, and in this theme, direct electric heating and other solutions suited to future processes are also being explored.

According to Jarmo Lilja, hydrogen production and hydrogen reduction form a further area of work. Projects are being launched to identify technically sound and cost-effective hydrogen production solutions. Research organisations also are studying hydrogen-based reduction and related technologies.

This theme also examines how melting, hot-rolling and cold-rolling processes must adapt when raw materials change. Future production will use hydrogen-reduced sponge iron and a larger share of recycled scrap. Managing impurities through secondary metallurgy will therefore be essential. Scrap logistics and quality control are relatively new areas for SSAB and require further research, as well as the assessment of alternative raw materials.

Sustainable coatings complete the theme’s broad agenda. The aim is to develop new coating solutions that avoid use of harmful substances and meet the needs of construction and automotive manufacturing, for example.

Collaboration will determine the impact

This R&D programme also involves more than traditional process and product development teams. IT, maintenance, product and production planning and other supporting functions are contributing to the work so that development is more focused, systematic and aligned with the needs of future production. SSAB group’s research leadership is giving this strategic programme strong backing at senior level. Lilja acknowledges Business Finland’s funding for leading companies. It makes it possible to build a larger programme and a systematic approach to boost a broader collaboration network. “The programme has started well. We need to work together as we move towards a more sustainable steel industry,” he concludes.

By combining fossil-free production, digital intelligence, advanced steel applications and circular use of materials, SWS seeks to create impact well beyond SSAB’s own operations. Its results can strengthen domestic industry, open new business opportunities for partners and help customers reduce the emissions of products used around the world.

The five-year SWS programme is launched on 7.10.2026 in Hämeenlinna.

Featured in Ohutlevy magazine

Want to learn more? The latest issue of Ohutlevy magazine includes a Finnish-language article about the project and its progress. Read the article here: Ohutlevy 1/2026