A development that could fundamentally change the European market for structural steel and reinforcing steel: Swedish steel corporation SSAB is receiving funding of 20 million euros from the European Union for a new research and development program. These funds are part of the EU strategy for decarbonizing energy-intensive industries and are intended to accelerate the development of fossil-free steel products for the construction sector.
The funding program focuses on further developing SSAB's HYBRIT technology, in which hydrogen is used instead of coke to reduce iron ore. This production method can reduce CO₂ emissions compared to conventional blast furnace processes by up to 95 percent. For planners and architects, this will mean future access to steel products with significantly improved EPD values (Environmental Product Declaration), which is particularly relevant for certifications according to DGNB or LEED.
The EU funding comes against the backdrop of increasing regulatory requirements: From 2026, the Carbon Border Adjustment Mechanism (CBAM) will take effect, which imposes charges on CO₂-intensive imports. SSAB is thus positioning itself as a pioneer for decarbonized structural steel in the European market. The company plans to offer fossil-free steel on a commercial scale starting in 2026 – initially for high-grade applications in structural steel construction and load-bearing structures according to Eurocode 3.
The strategic reorientation is also evident in cooperations with cement manufacturers such as Heidelberg Materials, in which steel slag is incorporated as a secondary raw material in cement production. In parallel, SSAB is advancing the digitalization of the production chain to manage material flows more efficiently and optimize quality assurance according to DIN EN 10025.
For building material suppliers and processing companies, it remains to be seen how the additional costs for fossil-free steel will develop. Industry experts initially expect a surcharge of 20 to 30 percent compared to conventional steel, which could, however, be offset by stricter CO₂ pricing and funding programs for sustainable construction.
