The pellet factory will provide feedstock for the ultra-low CO2 steel plant that Blastr is building in Inkoo, Finland. Blastr has chosen the Lutelandet industrial region on Norway’s west coast as a viable site for the development of the company’s pellet facility for producing direct reduction pellets (DR pellets) from iron ore pellet feed.
In the LOI, Blastr and Lutelandet Offshore Site & Drydock (LLOF) have agreed to a sublease of an area, and Blastr and Htwo-Fuel have agreed to work together to ensure grid and power capacity. According to Blastr, the plant will create roughly 120 direct jobs as well as numerous indirect jobs and economic activity in the neighbourhood.
A press release from the firm claims that the pellet plant is an important component of their integrated green steel value chain, which has the potential to reduce Scope 1-3 C02 emissions by over 90% when compared to conventional steelmaking.
“Lutelandet is a highly attractive site for the production of feedstock to our steel plant with industrial infrastructure already in place, access to a North Sea deepwater port, and clean renewable energy from hydropower and nearby wind farms. We look forward to cooperating with our site partners and the surrounding community to further develop the Lutelandet option in order to accelerate the implementation of our pellet plant and optimize our integrated value chain for ultra-low CO₂ steel products,” commented Hans Fredrik Wittusen, CEO of Blastr Green Steel.
“Blastr is a great fit for Lutelandet and will accelerate the development and cooperation between new green industries at our site. A pellet plant of this type and scale brings new competence, jobs, and significant investments to Lutelandet and the region. It also fosters synergy potential for collaboration among different industrial initiatives co-located in the area,” stated Tor Gjertsen, chairman of LLOF Site & Drydock.