A new research project led by the University of Oulu, Finland and SSAB will develop the entire steel production chain, combining electricity-based electric arc furnace technology with modernised hot rolling processes. The solutions will support the transformation of Finland’s steel industry and its transition to low-carbon steel production concept at the Raahe steelworks.
The Future Sustainable Electric Steel Mill (FutSteel) research project has been selected as part of the
Sustainable World Through Steels Flagship Programme, which will significantly expand research and development activities in Finland. The budget of the FutSteel project is 17 million euro. The project will start in June 2026 and will run for three years.
The steel industry is undergoing a global transformation. Traditional blast furnace-based production relying on coal generates significant emissions, while tightening climate targets, changes in energy systems and the availability of raw materials are challenging existing production models. As a result, production is shifting towards electricity-based, recycled steel and hydrogen-based processes.
At the same time, the entire steelmaking process is being renewed. The FutSteel project will examine how production systems can be redesigned without compromising quality or delivery capability. “This is essential to ensure that high-quality steel production remains in Finland,” emphasises
Petri Sulasalmi, Postdoctoral Researcher and Project Manager of the FutSteel project at the University of Oulu.
The FutSteel project develops a model in which electric arc furnace (EAF) technology is integrated into the existing hot rolling production chain in a new way.
Key focus areas of the FutSteel project
- The entire steel production chain will be renewed: the project investigates how, in a new model, electric steelmaking can be combined with modernised rolling processes while utilising fossil-free energy solutions
- Quality and technological challenges are addressed: the research focuses particularly on steel quality and on how new electricity-based and low-carbon processes can be adapted to demanding high-strength steel production
- Significant national impact: the steel industry is one of Finland’s largest single sources of emissions, and the transition to electric and hydrogen-based production can substantially reduce these emissions; the transformation of a single large steel plant could cut up to 7% of Finland’s total CO₂ emissions
“Electrification in the steel industry does not simply mean replacing one furnace with another. The entire production chain, from ironmaking to rolling, must be rethought,” says Sulasalmi.
“From SSAB’s perspective, particularly important areas in the project include the development of metallurgical processing across different stages to meet future requirements, as well as issues related to alternative energy solutions and raw materials,” says
Jarmo Lilja, Process Development Manager at SSAB.
The University of Oulu is carrying out the project in close collaboration with SSAB. The research results will be directly linked to supporting the industrial transformation of steel production. The research partners in the FutSteel collaboration are the University of Oulu, VTT and Åbo Akademi, and the industrial partners include SSAB, Coolbrook, Ovako, Hycamite, Otanmäki Mine, Strategic Resources, Titanor, Carbo Culture, Convion and Nordkalk.
The Sustainable World through Steels flagship programme was selected for Business Finland’s Veturi programme in April
Process Metallurgy Research Unit, University of Oulu, Finland