ESL Shipping and SSAB Double Down on Fossil-Free Shipping with HYBRIT-Powered Pact
In a bold move to decarbonize the maritime industry, Finnish shipping giant ESL Shipping and Swedish steelmaker SSAB have inked a renewed agreement to turbocharge their sustainable sea transport operations. This isn’t just another corporate handshake—it’s a high-stakes play to slash carbon emissions and redefine the future of shipping. The deal, valued at a cool €186 million, cements their commitment to transporting SSAB’s raw materials across the Baltic and North Seas, with a laser focus on fossil-free innovation.
At the heart of this collaboration is HYBRIT, a game-changing steelmaking technology co-developed by SSAB, LKAB, and Vattenfall. HYBRIT swaps out coal—the traditional villain of steel production—for hydrogen generated from renewable energy. The result? Fossil-free sponge iron, a key ingredient in SSAB’s green steel recipe. By integrating this breakthrough into their logistics chain, ESL Shipping and SSAB are setting the stage for a seismic shift in industrial sustainability. The partnership will handle a staggering six to seven million tons of cargo annually, with the ultimate goal of zeroing out CO2 emissions from SSAB’s raw material logistics.
Decarbonizing the Supply Chain: Green Methanol Vessels Take the Helm
But the ambition doesn’t stop at steel. ESL Shipping is doubling down on its own decarbonization efforts, betting big on next-gen vessels powered by alternative fuels. Case in point: the company has commissioned two 17,000 dwt multipurpose ships from China Merchants Jinling Shipyard, set to hit the seas in 2024. These eco-warriors will run on green methanol, a cleaner-burning fuel that’s gaining traction as a linchpin of the energy transition. By deploying these vessels, ESL Shipping isn’t just moving cargo—it’s moving the needle on sustainable shipping in the Nordic region.
“This partnership is about more than logistics—it’s about legacy,” says Jani Verkasalo, SSAB’s Procurement Director of Raw Materials and Energy. “By aligning with ESL Shipping, we’re ensuring a seamless transition to fossil-free steelmaking while driving continuous improvements in energy efficiency and sustainability.”
Zero-Emission Steel Hits the High Seas
SSAB isn’t just talking the talk—it’s walking the walk. In a groundbreaking move last November, the company’s subsidiary Tibnor partnered with Norway’s Salthammer Båtbyggeri shipyard to deliver 300 tons of SSAB Zero steel, a revolutionary material made from recycled scrap and produced using fossil-free electricity. This marks the first time such steel has been used in shipbuilding, signaling a new era for the maritime industry. The steel will be delivered in two batches, paving the way for a future where zero-emission vessels are the norm, not the exception.
As the world races toward net-zero targets, partnerships like this one between ESL Shipping and SSAB are proving that innovation and collaboration can drive real change. By leveraging cutting-edge tech like HYBRIT and green methanol, these industry leaders are rewriting the rules of shipping and steelmaking—one fossil-free shipment at a time.
