Sweden. JL BODEN WATER AB

The loan has been provided to JL Boden Water AB (“John Laing”). The new state-of-the-art water treatment facility in Boden will play a vital role in Stegra’s green steelmaking operations. Owned to by JL Boden Water ABJohn Laing, the facility will provide essential industrial water for green hydrogen production and cooling systems at the steel plant. Integrated into the existing infrastructure, the plant will treat water from the Lule River, ensuring its suitability for production and environmental standards.

The project is expected to be fully EU taxonomy eligible and contributes to the green transition in a traditionally hard-to-abate sector. By supporting sustainable processes, it will strengthen Europe’s energy independence and help decarbonise the steel industry.

Productivity:
The water treatment facility is crucial to steel production, maintaining productivity. The proposed project aims to enhance Europe’s energy independence and help Sweden’s steel industry transition to greener, sustainable methods, supporting the post-fossil fuel era. This shift aligns with the migration of heavy industry to northern Nordics due to intermittent power supply.

The global economy is dependent on steel since it is one of the core pillars of the society and one of the most important engineering and construction materials. Manufacturers in several sectors such as the automotive, construction, white goods and industrial equipment are seriously aiming at decarbonising their supply chain and a significant supply deficit is expected given the assumed demand of green steel up to 2035, providing incentives for producing low-emission primary steel.

Stegra’s hydrogen-based mill in Boden, combining proven tech at scale, will provide a first mover advantage in the race to green steel expected to become a future benchmark. By 2030, production aims to reach 5 Mt/a.

Sweden and Finland are at the forefront of steel R&D, with startups poised to contribute to Europe’s goal of net-zero emissions by 2050.

Environment:
The project is part of Stegra’s overall development. It involves using hydrogen for Direct Reduced Iron (DRI) production instead of natural gas, with an electrolyser installed for hydrogen production.

This innovative low-carbon steelmaking process is expected to reduce emissions by 90% compared to conventional methods. The plant will be Europe’s first large-scale, low-carbon steelmaking facility, providing significant environmental benefits.

While there are local NOx emissions, the overall reduction in global CO2 emissions is substantial.

The project is expected to be fully EU taxonomy compliant.

The water treatment facility is part of Stegra’s plant and was included in the Environmental Impact Assessment (EIA) and permit process. Stegra’s environmental, health, and safety management system will cover the water treatment’s operation.

A sustainability proofing has been carried out in accordance with the InvestEU Fund requirements, and a summary can be found here.

This is a project with a potentially extensive environmental and/or social impact (category A, read more).