Swedish steelmaker SSAB has selected Germany’s SMS Group to build a new 190-ton electric arc furnace (EAF), which will be one of the largest such units in the world according to SMS Group.

The new furnace will be located in Ökseläsund, Sweden, and is scheduled to start operating in the fourth quarter of 2026. The unit will be powered by a 280 MVA transformer and will have a direct power supply system from GE Vernova. To maintain a high level of power quality and reliability, the system includes two parallel conversion lines installed at a distance of 300 and 400 m from the furnace, directly connected to the 34 kV bus.

As noted, this EAF will not only play an important role in realizing SSAB’s plans to transition to fossil fuel-free production, but will also reduce Sweden’s overall carbon emissions by 3%.

Jan Heimann, Executive Vice President of SMS group, said: “This project is a significant step forward in our journey towards sustainable steelmaking. Powering the furnace with a fast digital control system will enable SSAB to achieve their targets in terms of power quality and efficiency. We are excited to contribute to a project that sets a benchmark for the entire industry.”

The European Commission has approved a €128 million state aid measure to Sweden to support SSAB in decarbonizing steel production at its Luleå site.

The aid will take the form of a direct grant to support the company’s accelerated transition to electric arc furnace production by installing an electric arc furnace (EAF), secondary metallurgy equipment and a continuous casting machine.