The Chain Reaction: How Nordic collaboration is decarbonising steel and industry
Alfa Laval, SSAB, Outokumpu
Nordic companies Alfa Laval, SSAB and Outokumpu have collaborated on an innovative heat-exchanger, produced using low-emission carbon steel and stainless steel achieving record reductions in embedded CO2. The joint initiative demonstrates the importance of collaboration between suppliers and manufacturers as well as the potential for low-carbon manufacturing to create jobs.
The companies’ individual journeys to cut emissions
Alfa Laval is a leading global provider of technologies in the areas of heat transfer, separation and fluid handling with a wide array of applications across industries within the energy, food & water and marine sectors, reducing energy and water consumption and cutting emissions. The plate heat exchangers that Alfa Laval install and service every year reduce energy capacity demand by 100 GW for their customers. However, operational efficiency is not enough as 90% of the scope 3 emission in Alfa Laval’s heat exchangers comes from purchased goods and services. Alfa Laval has set a target cutting scope 3 emission with 50% by 2030 from baseline 2020, and be net zero by 2050, verified by SBTi.
Outokumpu and SSAB are steel manufacturers based in Finland and Sweden respectively and form part of Alfa Laval’s value chain. Both have SBTi-verified emissions reduction targets, with SSAB aiming for net zero by 2045 and Outokumpu committed to reduce all greenhouse gas emissions by 42% per tonne of stainless steel by 2030 and carbon neutrality by 2050.
The steel industry, accounts for 8 percent of global energy system emissions (IEA 2023). Recent UK government modelling from EEIST shows that direct emissions from the global steel sector would need to decline by around 90% from 2020 levels by 2050 to be consistent with the goals of the Paris Agreement. To lead the field in these efforts, both SSAB and Outokumpu are producing steel from recycled materials and employing processes which use less fossil fuels.
SSAB Zero ™ commercially available today– is made using recycled steel and fossil-free electricity, biocoal and biofuels. It reduces the embedded CO2e emissions from the steel by up to 77% compared to hot-rolled steel made in SSAB’s blast furnace production system. Whilst Outokumpu’s Circle Green® has up to 93% lower carbon footprint compared to the industry average*, through use of recycled steel, low-carbon raw materials and fossil-free energy use.
Concept Zero™: putting low-carbon steels to the test
To meet its value chain emissions reduction commitments, Alfa Laval set out to produce a heat exchanger from low-emission carbon steel and stainless steel, reducing the emissions embedded in the product. Heat exchangers are used for heating and cooling in nearly every industrial and building application worldwide. They transfer heat from a hot to a cold fluid across thin metal plates, providing efficient heating or cooling and enabling for reuse of waste heat streams in in sectors such as chemical production, district heating, green hydrogen, and so on. Efficient heat exchangers can significantly reduce energy consumption in the surrounding system, making them a critical technology on the path to cutting global emissions.
Concept Zero™ represents Alfa Laval’s determination to turn net zero commitments into actions, by pioneering innovations and implementing them here and now. Low-carbon steel is an important step for Alfa Laval, enabling emission reduction from both materials and operations.
Collaboration on Helsinki Hospital cooling project
When Laakso Joint Hospital in Helsinki set out to integrate a cooling system in its new buildings, it was identified as the perfect project to implement Alfa Laval’s new gasketed heat exchangers, incorporating SSAB’s and Outokumpu’s low-carbon steel.
Delivering five heat exchangers in total, this cross-value chain collaboration both delivers energy-efficient cooling for years to come as well as a record low product carbon footprint, achieving a 60% reduction in carbon emissions against standard average market material emissions. This showcases what can be done with existing technology and innovations already today.
Jobs, Security, Growth
Between them, these three companies employ over 45,000 people in over 100 countries globally. Their success in leading efforts towards decarbonization in the critical areas of steel production and industrial processes should ensure jobs in these sectors remain safe. The HYBRIT initiative and SSAB’s transformation and modernisation of the Swedish steel to produce fossil-free steel is a good example of innovation and R&D hubs in the sector. Whilst the Helsinki hospital project specifically led to an upskilling of staff and increased technical expertise across the value chain.
Meanwhile, the energy saved by the application of heat exchangers as well as in the production of low-carbon steel means a lower reliance on fossil fuels and raw materials, creating higher levels of security for both producers and end customers.
Challenges on the path ahead
Whilst the Helsinki hospital case demonstrates what is possible to already today in terms of emission reductions, the future is not without challenges.
Scaling up the use of low-carbon steel in heat exchangers globally is challenged by both supply chain complexity such as availability of low-carbon material, as well as end customers’ ability to handle a premium cost. Although not part of a green public procurement initiative, the Helsinki hospital case illustrates what such procurement could achieve if applied to similar cases in terms of energy and emission savings. National and regional governments could boost the uptake of this technology by incorporating requirements into public procurement mechanisms as well as providing innovation grants or market-shaping funding to help cover higher costs of the technology in its early phases.
Conclusion
This initiative between three innovative companies along the value chain, demonstrates the importance of collaboration between suppliers and manufacturers as well as the potential for job creation in lower-carbon manufacturing. It also highlights how partnerships across industries can accelerate the deployment of breakthrough technologies, strengthen regional competitiveness, and support national and global climate goals. By showcasing what’s possible through coordinated action, it provides a model for scaling decarbonisation across other hard-to-abate sectors.
Supporting quotes
“Our heat exchangers already help cut our customers’ emissions during operation and now, by using low-emission steel, we’re also reducing emissions in their upstream value chain. This collaboration serves as a model for how local initiatives can have a global impact, pushing the boundaries and scaling up the usage of low-emission materials.” Julien Gennetier, Vice President Energy Division, Alfa Laval
“We need Nordic likeminded frontrunners such as our long-term partner Alfa Laval, and SSAB, to drive the industrial transition forward together. The demand for green steel is expected to surge significantly within the next years. Low-emission solutions, from renewable energy, hydrogen, and sustainable urbanization, all depend on stainless steel. Decarbonization is not just a goal anymore – it’s a necessity, requiring companies to invest and implement energy-efficient and low-emission technologies, such as heat exchangers, to accelerate the transition.” Rolf Schencking, President for Business Line Advanced Materials at Outokumpu
“This is one more great step towards a more sustainable future. We are proud to work with companies like Alfa Laval and Outokumpu, since our goal is to build a fossil-free value chain together with our partners and customers. SSAB Zero™ is made using recycled steel. By using fossil-free energy during the production, the fossil carbon emissions are virtually zero.” Tony Harris, Head of SSAB Europe
*) Global average carbon footprint of stainless steel: (2024):7 kg CO₂e per kg of stainless steel (Outokumpu’s calculation based on data provided by CRU, worldstainless and Kobolde & Partners AB). Outokumpu Circle Green CO₂ emissions: down to 0.5 kilos of CO₂e per kg of stainless steel.