CO2 emission reduction costs for iron ore-based steelmaking in Sweden

Possibilities to reduce CO2 emissions and related costs at Swedish iron-ore based steelmaking in Sweden have been estimated. An evaluation of the direct impact on costs for emission-reducing measures due to the inclusion in the EU ETS is also made. Two different abatement options, based on previously implemented measures at SSAB Oxelösund as well as some future measures that could be implemented at the company by 2010, have been investigated. The first option corresponds to a CO2 emission reduction of 6.5% and the second to a 13% reduction. The abatement measure with the largest reduction potential is dependent on natural gas being available at SSAB Oxelösund by 2010, which is not certain. Several of the estimated abatement costs are negative, meaning cost savings for the company if implemented. The cost estimates are strongly linked to the fuel prices. The inclusion of industries in the EU ETS increases the incentives for companies to implement CO2 abatement measures.