A new, first-of-a-kind hydrogen production facility in Gällivare will be established, using approximately 500 MW electrolyser capacity powered by fossil-free electricity. The use of hydrogen enables the conversion of iron ore into sponge iron. The project will enable SSAB to replace two blast furnaces in Oxelösund with an electric arc furnace, using the sponge iron as the feedstock to produce high-quality steel without using coking coal in the reduction step.