Context
The European steelmaking and mechanical engineering industries have an important role to play in addressing the challenges arising from the new long-term strategy on climate protection, announced by the European Commission in November 2018, and aimed at fulfilling the targets of the UN’s 2015 Paris Agreement. Accordingly, it calls for a climate-neutral Europe by 2050.
With regard to Finland’s contribution to accomplishing climate neutrality, far-reaching changes and developments in the steel industry will be crucial in achieving the challenging targets, as evidenced by the exceptional emission targets set for metal production that will strongly impact the entire Finnish technology industry. In this context, Finland’s ambitious aim is to become carbon-neutral already by 2035 and carbon-negative soon thereafter.
Novelty
The FOSSA2 project is based on three totally new concepts:
Fossil-free steel’s value chain and recycling will change the logic and business models of existing companies and create some new ones for the fossil-free value chain. In this new world order, steel production and applications will become critical, requiring companies to renew their revenue logic towards value-driven thinking instead of solely cost-based pricing.
The idea of breakthrough steels and steel applications via sustainable production routes is to develop fossil-free 3rd and 4th generation hot- and cold-rolled high-strength steels. Furthermore, the aim is to establish fossil-free value chains within the Finnish metals industry. The developed novel steel grades will have a yield strength in the range of 700–2000 MPa and elongation of approximately 15–30%, combined with extremely good low-temperature toughness, weldability, formability, and high sustainability, without excessive use of expensive alloying elements. Several advanced process designs are envisaged for various innovative concepts such as direct quenched (and partitioned) steels, advanced medium-Mn steels, and nanostructured martensitic and bainitic steels. The impact of this work package will be unique in terms of realizing significant reductions in CO2 emissions through the development and use of novel fossil-free steels, actualization of the fossil-free value chain, and the design and use of lightweight structures, thereby enabling greater reductions in energy consumption and CO2 emissions than have been possible for a multitude of steel applications.
The concept of a virtual steel production platform enables virtual control and adjustment of the steel manufacturing chain. The entire production route of the novel steels can be studied on one platform that consists of several material and process models without the need for expensive development and time-consuming experimental work. The virtual steel platform will enable process and steel designs using the envisaged novel steels (processes & properties) and applications based on the requirements of the end-user, i.e., backward design. The impact of this research will be optimized to strengthen efficient processing routes for sustainable steel manufacturing.
The Big Picture
The FOSSA2 project aims to initiate the transition towards a carbon-neutral Finland and conforms to an essential part of the strategic research agenda (SRA) of the Association of Finnish Steel and Metal Producers. Additionally, there are three other national projects supporting the realization of the SRA: 1) TOCANEM1/2, 2) NECOLEAP/Canelis, and 3) FFS1/2
The FOSSA2 project is closely connected to the FFS1/2 project, where fossil-free steelmaking is the prime focus. Hence, the FOSSA2 applications are envisioned based on the carbon-neutral steelmaking route. The work of the projects is linked together as follows:
- Applications of FOSSA2 are envisioned based on hydrogen reduction and novel EAF (electric arc furnace) processes that will be developed in the FFS project.
- Appropriate chemical compositions and high steel cleanliness must be achieved to satisfy the end-users’ needs (FFS), which will be accomplished via novel thermo-mechanical treatments, advanced designs, and workshop technologies (FOSSA2).
- The new products affect the internal and external recycling of steel (FFS). Additionally, longer lifetimes and lightweight structures reduce CO2 emissions during steel applications (FOSSA2).
- The impact of the projects is based mainly on the business change, sustainable growth, and advanced applications (FOSSA2).
Goals
FOSSA2 project is composed in the context of both the EU’s and Finland’s common goal to achieve carbon neutrality by 2050 and 2035, respectively. Accordingly, the project will focus on cutting-edge innovations, thereby generating new metallurgical competences and models, and building toolkits for long- and short-term future needs. The FOSSA2 project will also test the theories in pilot plant operations in cooperation with the main partners and will also have a unique operations model.
It is vitally important to start FOSSA2 as soon as possible because the main idea is that Finland makes the leading move for the initiative undertaken worldwide to develop fossil-free steel and thereby will stay ahead of others. Consequently, the results of FOSSA2 can be expeditiously extended to Finnish steel production, workshops, and end users, enabling them to strengthen their leading position in fossil-free steels and steel applications. The knowledge and novel concepts that need to be developed in this project will become the essential basis for the new steel products and business innovations.
The opportunities coming from this project can be extremely important so as to:
• Enable climate-neutral and competitive steel production, steel innovations, and steel applications (together with projects FFS, TOCANEM, and SRF)
• Expose Finland to large, untapped markets of fossil-free steel applications
• Secure the presence of the strategic industry in Finland as a key part of important value chains
• Enable cutting-edge know-how for other industries
• Enhance industrial symbiosis, such as but not limited to activities linked to the circular economy and integration of industry and energy transition.
Impact
The impacts of FOSSA2 can be divided into direct and indirect impacts.
Direct impacts:
Business impacts:
• The annual target of FOSSA2 partners is estimated to be about €500 million (by the year 2030).
• The value of annually sold industrial products of the steel and engineering industry is about €36 billion, i.e., 40% of total industrial production (source: Statistics Finland). The target of FOSSA2 is to directly influence more than 10% of this industrial production (new products, processes, and business).
• Direct impact can be realized by allocating about 80% to exports (source: Statistics Finland).
Emission trading calculation is based on the results of FOSSA2 and FFS:
• Results of FOSSA2 will enable reducing the weights of steel structures in moving equipment and thereby reduce CO2 emissions and raw material usage (estimated 5-8 million tons per annum in Finland) with enormous potential on a global scale. This is estimated to be realized during the years 2025-2050.
• The target of FFS is to decrease CO2 emissions by 4-7 million tons per annum using novel steelmaking technologies in the steel industry. This will enable a reduction of about 5% of the CO2 emissions in Finland.
• FOSSA2, FFS, and TOCANEM together can help influence emissions trading in Finland as high as 15%, and thus affect competitive advantage of €125 million per annum. This calculation is based on the carbon steel production that is about 5 million tons per annum, and an emission price change from €25 per ton of CO2 (year 2020) to €50 per ton (year 2035) (Source: IDDRI 2019).
Indirect impacts:
The indirect business impacts summarize the future business possibilities, while the indirect social impacts include strategic competencies that are essential for society in the future:
• Novel business. The idea here is to create new, mainly value-based, business that requires novel competencies, especially in environment-related technologies. It can also boost the value chain from the research stage to end users for innovative applications.
• Technological leap. It points to sustainable technology for steel products, manufacturing, and end users’ business. The main idea is to develop new applications with optimized productivity and service life. Also, the virtual steel production combined with the relatively new concept termed as “Backward Design” can open new, modeling-based, business.
• Social benefit. FOSSA2 affirms cooperation between Finnish steel manufacturing companies in order to meet the end users’ needs and help understand the future challenges. It is amply clear that the project envisions enhanced special knowhow in Finland.