ESL Shipping and SSAB set sights on fossil-free shipping in renewed agreement

Finnish shipping company ESL Shipping and Sweden’s steelmaker SSAB have extended their long-term agreement for sustainable sea transport of SSAB’s inbound raw materials across the Baltic Sea and from the North Sea.

As disclosed, the new contract also encompasses the transportation of SSAB’s fossil-free sponge iron, produced with HYBRIT technology, a steelmaking process developed by SSAB and compatriot firms LKAB, and Vattenfall, which replaces traditional coal typically used in blast furnaces to extract iron from ore by replacing it with hydrogen made from renewable energy sources.

ESL Shipping and SSAB further confirmed that they are also looking into fossil-free shipments. It is understood that the sea transport volume covered by the agreement is valued between six and seven million tons per year.

Through this deal, the two partners anticipate they could further improve efficiency as well as eliminate carbon dioxide (CO2) emissions from SSAB’s raw material logistics. In doing so, the collaboration is hoped to enable the Swedish manufacturer to transition to fossil-free steelmaking ‘more smoothly’.

“SSAB appreciates the long-term collaboration with ESL Shipping, and the recent extension secures the unique needs of coming years’ raw material supply for our Nordic operations, with a high focus on continuous improvements of energy efficiency and sustainability,” Jani Verkasalo, Procurement Director of Raw materials and Energy, SSAB, commented.

As informed, ESL Shipping plans to proceed with its endeavors to back its industrial partners toward delivering entirely fossil-free products and services.

The company is also striving to decarbonize its own supply chain, with a strong focus on eco-friendly vessels using alternative energy sources, such as the 17,000 dwt multipurpose vessels that can run on green methanol that were booked in October 2024 at China Merchants Jinling Shipyard (Nanjing). The units are expected to contribute to energy transition efforts in the Nordic region.

Representatives from the Finnish shipping player shared that this contract is valued at €186 million.

Concerning SSAB’s recent efforts, to remind, in November 2024, the company’s subsidiary Tibnor shook hands with Norway’s Salthammer Båtbyggeri shipyard to supply its ‘zero-emission’ steel made from recycled material and produced using fossil-free electricity.

The batch, said to be the first containing this type of steel to be handed over in the shipbuilding industry, comprised a total of 300 tons of the SSAB Zero steel, with plans for it to be delivered in two parts.