Commissioning of Oxelösund electric arc furnace delayed due to permitting
(Posted on 14/05/26)
SSAB’s conversion of the mill in Oxelösund to fossil-free production is being delayed due to appeals regarding protection of species. The delay relates to permits for the power line that will connect the new electric arc furnace.
Vattenfall Eldistribution, which is responsible for constructing the new power line, has informed that the grid connection will be delayed, impacting the start-up of production at the new electric arc furnace in Oxelösund. SSAB’s construction of the electric arc furnace is proceeding according to plan and production start was planned for early 2027 as previously communicated.
“SSAB is delivering according to both time and budget. It is extremely frustrating that external factors beyond our control are now forcing a postponement of commissioning. The unpredictability of the current system for grid connections and permitting processes for power lines in Sweden poses a serious risk to continued investment in electrification and modernization of Swedish industry. Moreover, the EU has identified the steel industry as a strategic industrial sector, not least in light of the increasing need for civil and military preparedness,” says Johnny Sjöström, President and CEO of SSAB.
SSAB will provide further information once a reasonable assessment of the duration of the delay can be made. The delay is not expected to have any material impact on the Group’s earnings or cash flow in 2026, nor to impact production or deliveries to customers.
Once the conversion of the mill in Oxelösund has been completed, Sweden’s total carbon dioxide emissions are estimated to decrease by approximately three percent.
SSAB applied for an increased power capacity in 2016. Vattenfall Eldistribution, which is constructing the power line to the new electric arc furnace and applying for the necessary permits, has been engaged in permitting processes since 2020. The concession application took approximately 3.5 years following appeals in several instances and gained legal force in January 2024. Decisions regarding easement rights also took several years and were appealed to the highest instance. These decisions gained legal force in September 2025. A matter concerning consultations with the County Administrative Board was initiated in spring 2024.
Since autumn 2025, the County Administrative Board of Södermanland has issued several decisions in consultation and exemption processes regarding two plants - chimaphila umbellate and goodyera repens – and the bird capercaillie. The decisions were appealed in different parts to the Land and Environment Court, that in February 2026 denied the appeals in two out of three cases. The same day, the Land and Environment Court lifted the decision of the County Administrative Board in the third case about capercaillie and remitted it to the County Administrative Board for legal review.
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