(Bloomberg) -- Steelmaker SSAB AB plans to transform its Nordic strip production, one of the region’s top emitters, to cut emissions faster than previously forecast.

A pioneer of fossil-free steel, SSAB will invest about 45 billion kronor ($4.8 billion) through 2030 to transform its Lulea and Raahe mills in Sweden and Finland to “cost-effective mini-mills” with electric arc furnaces and rolling mills, the Stockholm-based company said on Friday. That will “eliminate the need to invest in existing systems with blast furnaces, steel plants and rolling mills,” the company said in a statement.

SSAB is Sweden’s biggest single corporate emitter of carbon-dioxide and a reduction is key for the country to reach its net-zero emission target in 2045. The investment is set to cut 10% of Sweden’s total carbon-dioxide emissions, and 7% of Finland’s, corresponding to an emission reduction of more than 8 million tonnes of carbon dioxide a year, compared with present levels, the company said. 

At the same time, the decision puts pressure on the countries’ governments to get the necessary infrastructure in place, such as power grids, as well as any required permits. One of the main challenges will be access to more green power via new lines as plants will consume a lot more electricity when coal is replaced. SSAB has already decided to invest in an electric arc furnace at Oxelosund, south of Stockholm, but the site lacks sufficient power cables to support the facility.

“To achieve this ambition, the necessary infrastructure, access to fossil-free electricity in particular, must be in place in time,” said Chief Executive Officer Martin Lindqvist.

Separately, SSAB reported Ebitda of 7.75 billion kronor for the fourth quarter, beating the average analyst estimate, and said full-year 2021 was the company’s best ever.

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