Sweden’s Ovako AB will adopt carbon-neutral steel production starting on Jan. 1, 2022. The company’s goal is to achieve zero-carbon emission steel. Beginning in January 2022 and until the goal is met, Ovako will counterbalance the remaining carbon emissions in production through carbon offsets. The steelmaker has reduced carbon emissions significantly through efficient processes, the use of fossil-free electricity and dedicated investments such as conversions to fossil-free fuels for heat treatment. By building on the success of its recent pilot project to heat steel with hydrogen, Ovako is now preparing the first full-scale production installation at its Hofors mill in Sweden.

“Ovako’s climate initiatives have, so far, contributed to a reduction of our carbon footprint by 55% since 2015. Through our hydrogen heating initiative, we will drive that development further and support our customers in their journey to make their products more climate smart,” said Marcus Hedblom, president and CEO of Ovako.

Ovako is a subsidiary of Sanyo Special Steel and a member of Nippon Steel Corporation group.