A new company from Norway is planning one of the largest investments in industrial production in Finland so far. Blastr Green Steel said it would build a steelworks and a hydrogen plant in Inkoo, Finland, that would run on renewable electricity.
Steel production is one of the hardest sectors to decarbonize. Big players are rushing to implement the latest technologies to avoid rising carbon emission costs and meet the needs of customers that aim to become carbon neutral. According to a recent study, switching a steel factory to hydrogen-based direct reduction of iron ore and electric arc furnaces using only solar power costs up to EUR 7 billion.
Blastr Green Steel, based in Norway, is starting from scratch. The company, founded in 2021 by investment firm Vanir Green Industries (VGI), plans to establish a green steel plant with an integrated hydrogen production facility in Joddböle, Inkoo, in south Finland. It signed a letter of intent with Fortum on exclusive rights to utilize a site where a few years ago the Finnish company dismantled its coal power plant, once the largest in the Nordic region.
Blastr: Finland is ideal for low-carbon steel project
The investment is valued at EUR 4 billion, which would make it one of the biggest in industrial production in the country so far. Blastr claims the plant would have up to 1,200 regular employees. The start of operations is scheduled for 2026.
“Finland is an ideal location for our project. It has an ambitious low-carbon target, supportive and predictable operating conditions for the green industry, fossil-free energy, and a highly qualified workforce,” Blastr’s Chief Executive Officer Hans Fredrik Wittusen said.
CO2 emissions to be 95% lower than in conventional production
Blastr pointed out it would use hydrogen instead of coke and coal and reduce the carbon dioxide footprint along the entire value chain, with the aim of achieving 95 percent lower CO₂ emissions. The steel plant is planned to produce 2.5 million tons of high-quality hot- and cold-rolled green steel per year.
“Finland is an excellent place for carbon-neutral industry and production of decarbonized steel: We have a strong and reliable electricity grid, good conditions for producing emission-free energy and efficient logistics,” Minister of Economic Affairs Mika Lintilä stated.
The startup revealed it would raise debt and funds for the project in the capital market, Carbon Herald reported. CEO Wittusen said Finland was chosen partly because of the strong wind power supply.