Swedish Ovako launches new energy-efficient furnace in Boxholm

Swedish steel company Ovako has taken an important step in the development of sustainable steel production by opening a new energy-efficient furnace in Bokholm. Investments in the project amounted to SEK 60 million, and its launch will reduce energy consumption by 50% and reduce carbon dioxide emissions by 6-7 thousand tons per year, the company said in a press release.

Romina Pourmohtari, Minister of Climate and Environment of Sweden, emphasized that projects such as the hydrogen plant in Hofors and the new furnace in Boxholm strengthen Sweden’s position as a world leader in low-emission steel production.

“Investing in energy efficiency and sustainability is key to the future of the industry. Ovako demonstrates how innovative solutions can benefit both the climate and the economy,” said Pourmohtari.

Markus Gedblom, CEO of Ovako Group, noted that this technology not only reduces emissions but also guarantees the production of high-quality steel with a minimal carbon footprint.

The furnace is already significantly improving the company’s energy efficiency, and in the future it will be able to run on hydrogen, which will completely eliminate CO2 emissions during metal heating. The project is part of the company’s long-term strategy to reduce carbon emissions by 80% compared to 2015.

As GMK Center reported earlier, in August 2023, Ovako launched a hydrogen plant at its plant in Hofors, Sweden. The clean hydrogen produced by the Ovako plant is used to heat steel in rolling mills, which significantly reduces carbon emissions. In addition to heating steel, hydrogen is used to fuel trucks, and excess energy is used for district heating.

Ovako specializes in the production of clean and high-quality structural steel used in the transportation, engineering and bearing industries. Its products are made from 97% recycled raw materials, which contributes to the development of environmentally friendly solutions in industry.