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Norway’s Blastr to invest €4B to create green steel in Finland

Blastr Green Steel
Photo Credit: Blastr Green Steel

The development of renewable energy infrastructure, such as wind turbines, as well as industries like construction, the automotive industry, and consumer goods will depend on green steel, which is a key enabler for the green transition. By 2030, there will be a 50M tonne demand for decarbonized steel in Europe alone, which is almost a third of the current demand.

On the similar lines, Norway-based Blastr Green Steel has announced that it will invest €4B in a steel plant in Inkoo, Finland, where it will begin operating by the end of 2026 and become a significant user of green energy.

The manufacturing facility will have a green hydrogen production unit that will be powered primarily by wind energy. The steel manufacturer will either directly or indirectly own the wind farms from which the power will be sourced.

Blastr has secured the right to use the selected land area through a letter of intent (LoI) with the Finnish state-owned energy company Fortum Oyj. The site is within the latter’s existing industrial complex in Inkoo.

Up to 1,200 direct jobs could be generated by the investment during the operations stage. The production is anticipated to begin by the end of 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. Inkoo was selected as our location due to its high-quality infrastructure and access to clean power. In addition, the ice-free deep-sea harbor enables efficient, low-carbon logistics all year round and close access to the European market,” said Hans Fredrik Wittusen, CEO of Blastr Green Steel.

“We will systematically address all parts of the value chain to reduce overall carbon footprint, reduce waste and develop circular solutions. Furthermore, our ambition is to secure a significant share of our power needs from directly or indirectly owned wind parks, contributing through own investments and partnerships to advance clean energy production in Finland. We believe that our project will provide positive benefits for the region, and we will engage in an active dialogue and cooperation with the local community and other stakeholders,” added Hans Fredrik Wittusen.

Lowering CO2 emissions

Approximately 8% of the world’s CO2 emissions are produced by the steel industry as a result of the substantial use of fossil fuels in the traditional processes for producing steel. Currently, about 1.9 tonnes of CO2 are produced for every tonne of steel produced. In order to achieve 95% lower CO2 emissions compared to the traditional manufacturing process, Blastr will replace coke and coal in the chemical reduction phase with hydrogen. It will also reduce the CO2 footprint throughout the entire value chain.

The steel plant is expected to produce 2.5M tonnes of high-quality hot and cold-rolled green steel per year.

Blastr is supported by Vanir Green Industries, which was founded by Tore Ivar Slettemoen, who is also one of the founders of Freyr Battery AS, a company that focuses on producing green battery cells to decarbonize energy and transportation systems. Blastr Green Steel was founded in 2021 with the goal of becoming an integrated green steel producer that capitalises on Nordic advantages.

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