A pilot plant in Sweden turned hydrogen reduced iron into prototype car parts, not a finished car

SSAB, LKAB and Vattenfall have produced more than 5,000 tonnes of hydrogen reduced iron at a pilot plant in Lulea, Sweden since 2020, and in 2021 sent Mercedes Benz prototype parts for a car body. Two much bigger plants are still on the way, but neither has shipped finished steel yet.

more than 5,0002tonnes of hydrogen reduced sponge iron produced at the HYBRIT pilot plant in Lulea, Sweden since 2020
423kilograms of biogenic carbon dioxide released for every tonne of iron reduced with hydrogen at the pilot plant, against 383 kilograms for the same tonne made with a conventional natural gas process
50,0004tonnes of steel a year Mercedes Benz agreed to buy from Stegra, formerly H2 Green Steel, for its European production

What the pilot plant has actually made

Since 2020, a pilot plant in Lulea, Sweden has produced more than 5,000 tonnes of iron made by stripping oxygen from iron ore with hydrogen instead of the fossil fuel that step usually burns, a process called direct reduction. The pilot is run by 3 companies working together as a project named HYBRIT, the steelmaker SSAB, the mining company LKAB and the power company Vattenfall. In July 2021, SSAB rolled that iron into the first steel plate made with the hydrogen version of the process.

Hydrogen reduced sponge iron at HYBRIT, produced and targeted
Actually produced since 2020 at the Lulea pilot plant5,000Targeted by 2026 at the Gallivare demonstration plant1,300,000Targeted by 2030 at the Gallivare demonstration plant2,700,0000100000020000003000000tonnes of sponge iron

The Lulea figure is tonnes actually produced since 2020. The Gallivare figures are targets for a demonstration plant that no source here confirms is under construction yet.

Source 2.

Show the numbers
Actually produced since 2020 at the Lulea pilot plant5,000
Targeted by 2026 at the Gallivare demonstration plant1,300,000
Targeted by 2030 at the Gallivare demonstration plant2,700,000

That September, on September 1, 2021, SSAB announced a partnership with Mercedes Benz, the 1 named carmaker in this record. What Mercedes Benz actually received was not a finished car. An announcement from SSAB called them prototype parts for a car body, planned for delivery the following year.

We are extremely happy to welcome Mercedes Benz as a partner for fossil free steel products.

Martin Lindqvist, President and Chief Executive Officer of SSAB. Source 1.

Volvo Group is also named as an early customer of steel from the same pilot plant, but Volvo Group builds trucks and construction equipment, not passenger cars, and no source names a specific Volvo Group vehicle.

The emissions number behind the pilot

An August 2024 report from SSAB measured what the swap to hydrogen actually changes. Producing a tonne of directly reduced iron with hydrogen releases 42 kilograms of what SSAB calls biogenic carbon dioxide, meaning carbon dioxide counted as part of the renewable cycle rather than from a fossil fuel. The same tonne made with a conventional natural gas process releases 383 kilograms of fossil carbon dioxide, carbon dioxide released from burning a fossil fuel. That is a cut of about 89%, a MAOWCE calculation from the 2 figures SSAB gives for the same measurement.

Carbon dioxide per tonne of directly reduced iron, hydrogen against natural gasdirect reduction using hydrogen, the process SSAB tested at its pilot planta conventional natural gas process, the comparison figure SSAB gives
010020030040042Hydrogenroute383Natural gasroutekilograms of carbon dioxide per tonne of iron

Both figures are SSAB tested results for the same measurement, per tonne of directly reduced iron. The hydrogen figure is what SSAB calls biogenic carbon dioxide, counted as part of the renewable cycle rather than from a fossil fuel.

Source 3.

Show the numbers
Hydrogen route42
Natural gas route383

The plant still being built for that scale

The next step up for HYBRIT is a demonstration plant at Gallivare, Sweden, and its site was chosen in March 2021. It is targeted to deliver 1.3 million tonnes of sponge iron by 2026, rising to 2.7 million tonnes by 2030. None of the 5 sources checked here confirm that plant is under construction yet, only that a research report on the finished pilot phase was delivered in August 2024. Until it ships tonnage, the 1.3 million and 2.7 million tonne figures are targets, not steel already made.

A separate company, further behind

Stegra, a different company from HYBRIT that used to be named H2 Green Steel, is building its own plant in Boden, Sweden, aimed at 2.5 million tonnes of steel a year. In June 2023, Stegra agreed to sell Mercedes Benz about 50,000 tonnes of steel a year from that plant for its European production. As of a report dated January 21, 2026, the Boden plant was 60% built, had shipped no steel at all, and Stegra was still seeking more than 1,000,000,000 dollars in financing to finish it.

Sources

  1. SSAB to deliver fossil free steel to Mercedes Benz. SSAB. Published 2021-09-01. Accessed 2026-08-31.
  2. HYBRIT, Vattenfall partnership with LKAB and SSAB. Vattenfall Group. Accessed 2026-08-31.
  3. HYBRIT, six years of research paves the way for fossil free iron and steel production on an industrial scale. SSAB. Published 2024-08-27. Accessed 2026-08-31.
  4. Mercedes Benz and H2 Green Steel announce agreements in both Europe and North America. Stegra, then trading as H2 Green Steel. Published 2023-06-07. Accessed 2026-08-31.
  5. Stegra lands key customer for green steel plant amid funding crunch. Canary Media. Published 2026-01-21. Accessed 2026-08-31.

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