Hybrit Development AB

In 2016, SSAB, LKAB and Vattenfall joined forces to create the HYBRIT Initiative - a project that endeavours to revolutionize iron- and steelmaking.

Lobbying Activity

Meeting with Frans Timmermans (Executive Vice-President) and Vattenfall and

31 Mar 2022 · Signing ceremony for Innovation Fund contributions to decarbonisation projects

Meeting with Asa Webber (Cabinet of Commissioner Ylva Johansson) and Kreab Worldwide

8 Feb 2022 · Fossile free steel production

Response to Updating the EU Emissions Trading System

8 Nov 2021

HYBRIT - Hydrogen Breakthrough Ironmaking Technology - is an initiative developed by SSAB (global leader in high strength steels), LKAB (Europe’s largest iron ore producer) and Vattenfall (one of Europe’s largest electricity producers) that aims to revolutionize iron- and steelmaking by replacing coking coal, traditionally needed for reduction of iron ore, with fossil-free hydrogen. The result will be the world’s first fossil-free iron and steelmaking technology, with virtually no carbon footprint. Hybrit Development AB is the joint venture formed in the initiative to develop the core technology. HYBRIT welcomes the revision of the EU Emissions Trading System (EU ETS) and has the following recommendations, which are further detailed in the uploaded position paper: 1. The EU ETS must play a central role in an ambitious emissions reductions policy framework, aiming to decarbonise the sectors it covers. It must be revised to achieve the EU’s 55% reduction target for 2030; 2. The most important measures to ensure that the EU ETS drives the GHG emissions down in line with the EU’s agreed 2030 and 2050 climate targets are to set a higher Linear Reduction Factor (LRF), with entry into force as soon as possible, and; 3. The product benchmark system for free allocation needs to be reformed so that different technologies can compete on a level playing field, when it comes to their CO2 reduction potential.
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Response to Revision of the Communication on important projects of common European interest

21 Dec 2020

From the HYBRIT initiative (SSAB, LKAB, Vattenfall and HYBRIT Development AB). HYBRIT (Hydrogen Breakthrough Ironmaking Technology) is an initiative by steel company SSAB AB, mining company LKAB and electricity producer Vattenfall AB. The aim for HYBRIT is to revolutionize the iron and steelmaking technology, by replacing coal and coke used in the blast furnace process with green hydrogen in the new HYBRIT process, thus creating a fossil-free value chain for steel production, from iron ore mine to finished steel products. HYBRIT Development AB (HDAB) is a joint venture development company, equally owned by the above three partners. HYBRIT has the following feedback in the consultation. Due to the unclear future regulatory environment for the European steel production and its competition on the global market, and the fact that there is no market that would factor in the extra cost of, for example, hydrogen based steelmaking technology, investments in such technology is associated with very high risk. It is therefore important that, to the extent motivated by the market failures and the funding gap, the IPCEI guidelines, for an initial time frame, allows risk-sharing through financial support of projects also at full industrial scale and allow adequate financial support of eligible costs, including both capital and operational costs. This could be done through the development of Environment category of point 23 of the Communication.
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Response to Climate change mitigation and adaptation taxonomy

18 Dec 2020

Please refer to our attached document.
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Meeting with Stefanie Hiesinger (Cabinet of Executive Vice-President Frans Timmermans) and FIPRA International SRL

7 Dec 2020 · Presentation of the HYBRIT project’s progress in view of the ambitious Green Deal objectives

Response to Updating the EU Emissions Trading System

26 Nov 2020

HYBRIT - Hydrogen Breakthrough Ironmaking Technology - is an initiative developed by SSAB, LKAB and Vattenfall that aims to revolutionize steelmaking by replacing coking coal, traditionally needed for steelmaking, with fossil-free hydrogen. The result will be the world’s first fossil-free steelmaking technology, with virtually no carbon footprint. Hybrit Development AB is the joint venture formed in the initiative to develop the core technology. (1) HYBRIT believes that the EU ETS is a powerful and cost-efficient tool to significantly reduce GHG emissions in a market-based, technology-neutral and environmentally predictable manner. However, the legislative proposal for the revision of the EU ETS Directive should lead the way not only towards emissions reductions and an increased investment in the EU in clean steel technology, but also encourage similar actions outside the EU. It is important that the revised ETS supports frontrunners in the transition towards fossil-free steel and rewards the most efficient steelmaking value chains. (2) Market Stability Reserve (MSR). It is important to ensure the MSR’s ability to cope with additional surplus allowances generated by updated climate policies and targets (e.g. Renewable Energy Directive, Energy Efficiency targets, phase-out of coal power) and the effects of the economic downturn in the future. Increasing the intake rate will be necessary to ensure the functioning of the ETS with new, more ambitious targets. An updated MSR should address the supply/demand balance to stabilize the carbon price, decrease uncertainty and trigger investments in fossil-free steel technologies. (3) A new Linear Reduction Factor (LRF) in line with the increased EU 2030 and 2050 climate ambition should be agreed and take effect as soon as possible. HYBRIT supports strengthening the ETS allowance cap through the application of a higher annual LRF that provides visibility and long-term guidance for the private sector and the investor community. However, the free allocation share should be increased proportionally. We believe that this revision should be scheduled as early as possible. Ideally the new LRF should start from 1 Jan 2023. (4) ETS product benchmarks. To take full advantage of innovative and sustainable industrial production, the ETS should be designed to benefit the most climate-efficient methods from quarrying in the rock to finished steel. HYBRIT therefore calls for a revision of the product benchmark system that supports the technology transitions needed for clean steelmaking, and that would result in a fair allocation of free allowances for value chains that produce the same product. (5) Funding mechanisms. Any review of the ETS should strengthen the role of funding mechanisms for R&D and innovation. The first call for the Innovation Fund, which was heavily oversubscribed, shows that many promising projects exists within European industry, and that with increased support, emissions reductions can be accelerated. The resources available for the Innovation Fund depend on the EU ETS price and hence a strengthening of the EU ETS will support low-CO2 innovation also in that regard. (6) As best available technological and economic evidence is needed to shape the new ETS policies, HYBRIT welcomes the promotion of best available techniques (BAT) for a climate-neutral steel industry value chain. The climate instruments need to be synchronized so that the different parts of the value chain for fossil-free steel are supported to ensure production of fossil-free steel in a manner which ensures competitive costs for EU users of steel.
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Meeting with Ditte Juul-Joergensen (Director-General Energy)

9 Dec 2019 · HYBRIT project regarding climate neutral steel production