LKAB and Hitachi Energy have signed a Memorandum of Understanding (MoU) on a long-term collaboration that will support LKAB’s electrification and transition to a fossil-free future.
In a first step, Hitachi Energy is delivering the necessary technology and equipment for electrical power management for the planned demonstration project for sponge iron production in Gällivare.
Jan Moström, President and CEO of LKAB, said: “This is another important step on the path to enabling our planned transition and expansion. Electrification is absolutely central to our continued competitiveness going forward in a society that achieves our climate goals. To get there, we need to utilise the expertise that is gathered within the industry. The collaboration with Hitachi Energy gives us the conditions to build cost-effective solutions that enable our future competitiveness.”
The new collaboration between the parties aims to strengthen efficiency, sustainability and innovation in electrical power transmission and energy management.
The efforts will primarily focus on the planned first demonstration plant for sponge iron production and related hydrogen plants for production. The MoU describes the joint efforts of the companies to enable continued electrification and the implementation of a hydrogen-based direct reduction process on an industrial scale.
Tobias Hansson, Country Managing Director of Hitachi Energy in Sweden, said: “We are pleased to collaborate with LKAB in this important initiative. No single company or country can manage the energy transition on its own – cooperation and partnership are required to make it a reality. Our joint expertise and close cooperation will drive developments in energy efficiency and sustainability forward.”
Hitachi Energy has a global presence and over a century of expertise in electrification, offering advanced grid connection solutions including transformers, high-voltage products and systems tailored to the growing needs in fossil-free mining and steel making. Together with LKAB’s industry leadership, the collaboration lays a strong foundation for continued innovation, reduced carbon emissions and long-term impact throughout the value chain, the companies say.
Moström added: “Electricity and its efficient transmission are a crucial factor in the transition that LKAB and the industry are facing. There are many different parts that need to be put in place, and continued expansion of the electricity infrastructure is also necessary, so that we can get the electricity where it is needed when it is needed.”
LKAB’s planned demonstration plant for the production of sponge iron with Hybrit technology in Gällivare is expected to produce 1.35 Mt/y of sponge iron, and will then be gradually supplemented with more plants to a production capacity of 5.4 Mt/y.
