SSAB, the Swedish steel pioneer, has unveiled a groundbreaking advance: hydrogen-produced near-zero emissions steel, manufactured in its Montpelier, Iowa, facility via the HYBRIT process. This hydrogen-reduced iron, cooled with recycled scrap and powered by fossil-free electricity, meets the IEA’s emissions benchmark (50–400 kg CO₂e/tonne). The first output is destined for GE Vernova’s onshore wind towers, a high-visibility win for industrial decarbonization. 

HYBRIT & Technical Elements of SSAB’s Approach

The HYBRIT process replaces coal with green hydrogen to reduce iron ore to sponge iron, emitting only water vapor—not CO₂. The sponge iron is then melted with recycled scrap, renewable natural gas, and electric power to produce steel, resulting in cradle-to-gate emissions in the range of 50–400 kg CO₂e/tonne — significantly lower than the ~1.8 t CO₂e/tonne typical in conventional steel production. 

At Montpelier, ramp-up is phased to ensure process stability and feedstock integration. Meanwhile, anchor offtake deals with GE Vernova and strategic alignment with industrial buyers, such as Scania, help validate demand ahead of scale. 

SSAB, the Swedish pioneer in high-strength sustainable steel, unveiled the world’s first hydrogen-based steel that hits the IEA near-zero emissions benchmark (50–400 kg CO₂e per tonne). Made at its Montpelier, Iowa facility via the HYBRIT process—where hydrogen-reduced iron meets recycled scrap, fossil-free electricity, and renewable natural gas—this SSAB Zero steel is bound for GE Vernova’s onshore wind towers. A First Movers Coalition member and partner to Scania (eyeing 100% hydrogen-produced steel by 2030), SSAB’s announcement feels like a breakthrough moment in industrial decarbonization and the shift to sustainable energy. And trust me, this is just the opening act for hydrogen-based steel.

Strategic Implications

Hitting the IEA’s threshold doesn’t just prove that hydrogen production and steelmaking tech have matured—it hands SSAB a coveted first-mover spot in a market starving for low-carbon materials. Considering steelmaking accounts for around 7% of global CO₂ emissions, major players like GE Vernova and Scania are scrambling to secure near-zero-emission supply chains. By slotting this new steel into U.S. wind towers, GE Vernova boosts its renewable energy rollout and scores brownie points with investors and regulators. Meanwhile, SSAB’s role in the First Movers Coalition isn’t just for show—it’s a bold procurement play that tells competitors and policymakers industrial-scale hydrogen solutions are no longer on the drawing board but up and running.

This game-changer could also shake up discussions on steel pricing. Sure, green steel comes with a premium—green hydrogen costs are still around $4–8/kg, versus the $2–3/kg target—but early adopters win in the long run with budget predictability against bumpy carbon prices. Montpelier’s output might be modest today, but it paves the way for a ramp-up in Europe and North America. In regions that pledge to use green materials, SSAB is now the partner to beat. That, in turn, is likely to spur more investment in electrolyzers and renewable power, thereby accelerating the development of hydrogen infrastructure worldwide.

Historical Context

Traditionally, steel is made in coal-fired blast furnaces, belching over 1.8 tonnes of CO₂ per tonne of steel. In 2016, SSAB, LKAB (iron ore), and Vattenfall (power) launched the HYBRIT initiative to replace coal with hydrogen. Fast-forward to 2021: a pilot plant produced proof-of-concept fossil-free steel, but the volumes were tiny. In 2025, Montpelier transitions from pilot to commercial scale, earning the IEA’s stamp of approval. By clearing the 50–400 kg CO₂e benchmark, SSAB is setting new standards for carbon accounting and solidifying hydrogen’s role in reducing coke in iron production. With policymakers tightening emissions rules and rolling out carbon border taxes, low-carbon steel is fast becoming a strategic must-have—not just an eco-friendly tagline.

Technical Snapshot

At the heart of this breakthrough sits HYBRIT (Hydrogen Breakthrough Ironmaking Technology). Instead of coal, green hydrogen reduces iron ore pellets into sponge iron, kicking out only water vapor. Then the sponge iron gets melted down with recycled scrap, biocoal, and renewable natural gas under fossil-free electricity. The result? SSAB Zero steel with cradle-to-gate emissions in that sweet 50–400 kg CO₂e/tonne window—way below the 1.8 t CO₂e from traditional steel.

• Green hydrogen: produced onsite or nearby, targeting costs under $3/kg.
• Energy inputs: 100% fossil-free electricity backed by renewable PPAs.
• Feedstock mix: about 70% hydrogen-reduced iron and 30% recycled scrap.

Currently, Montpelier’s daily output is just a fraction of its maximum capacity, following a phased ramp-up to establish stability and cost efficiency.

Market Impact

Buyers today weigh low-carbon creds as heavily as price per tonne. SSAB has just upped its game in the burgeoning green steel market. With deals secured with GE Vernova and forward contracts with Scania, SSAB is lining up anchor customers well ahead of its rivals. Analysts at IDTechEx predict that green steel could capture 10% of global demand by 2030 if hydrogen costs are halved. For OEMs and constructors, switching to green steel isn’t just a matter of PR—it’s a genuine draw for investors and a requirement for ESG compliance. SSAB’s initial volumes may seem small, but they’re setting a bar that’ll shape procurement rules in construction, automotive, and heavy machinery.

Scalability & Challenges

Don’t expect a flip-the-switch moment while green hydrogen sits at $4–8/kg—prices need to drop 40–60% to hit that sweet spot. Scaling up involves massive electrolyzer projects and a robust hydrogen infrastructure, including pipelines, storage, and additional components. Renewable power is the linchpin; Montpelier enjoys local wind and solar, but not every site has that perk. Industry vets say it could take a decade of steady investment before hydrogen-based steel truly competes on price with coke-fired steel. Still, Montpelier offers a live case study, giving policymakers and investors a playbook to de-risk a broader rollout.

Key Takeaways

• First-mover lead: SSAB’s steel meets the IEA near-zero threshold, grabbing a competitive edge.
• Strategic supply: Anchor customers GE Vernova (wind towers) and Scania (trucks by 2030) validate market demand.
• Tech proven: HYBRIT slashes emissions to sub-400 kg CO₂e/tonne, versus 1.8 t CO₂e for blast furnaces.
• Price gap: Green hydrogen costs must tumble 40–60% to close the green steel premium.
• Policy push: Carbon pricing and incentives are crucial for scaling hydrogen production and steel decarbonization.

As industrial decarbonization picks up pace, SSAB’s hydrogen-based steel milestone raises the bar. The next steps? Crank up supply, drive down hydrogen costs, and expand the hydrogen infrastructure to make green steel the new standard and rewrite the playbook for sustainable heavy industry.

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SSAB’s hydrogen-powered steel is a milestone, but the journey to a zero-carbon industry is just beginning. Klean Industries brings deep capability across hydrogen, circular feedstocks, and industrial strategy to help you lead, not follow.

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