A Rising European Steel Manufacturer Considers Establishing a DRI Plant in the UK

An agreement has been made between Blastr Green Steel and Redcar Bulk Terminal to investigate the potential of building a direct-reduced iron plant in Teesside, United Kingdom.

Blastr to Invest in DRI

Blastr Green Steel, headquartered in Oslo, has recently penned a letter of intent (LOI) with Redcar Bulk Terminal (RBT) in Teesside, United Kingdom. This agreement is to examine the viability of situating a DRI pellet plant at RBT which would supply feedstock for its steel plant situated in Inkoo, Finland.

Blastr reports that a site in northern England is being considered for the establishment of an installation to turn iron ore pellet feed into direct-reduction pellets.

“Recycled scrap metal is indeed planned to be used as feedstock for the steelmaking process,” Earlier in the year, Minna Sundelin from Blastr shared with Recycling Today. “The Blastr project is still in an early development phase, and the company is in a process of defining the scope of the use of scrap.”

Blastr’s newly planned investment in DRI reveals that the organization has ambitious plans for using scrap alternatives. The firm states that it intends to use 3 million tons of DRI per year from Teesside in its upcoming “ultra-low CO2 steel plant” located in Inkoo, Finland.

Roughly half of the pellet quantities will be directed to Blastr’s steel facility in Inkoo, while Cargill Metals is set to distribute the remainder to an expanding world market for DRI.

Pellet Plant Details

Just days ago, Blastr made an official announcement of its new framework deal with Cargill, which is based in the United States. It involves the provision of iron ore to be used in the upcoming Blastr Pellet Plant. In addition, it covers offtake and sales of DR pellets, hot briquetted iron (HBI), steel products with extremely low CO2 emissions, scrap procurement, green shipping as well as logistical solutions. Working capital and risk management services are also part of the agreement.

Due to the grid capacity not meeting Blastr’s requirements in Gildeskål municipality, Norway, the steelmaker has revealed its plans to explore other potential sites for its pellet plant. “This option has stalled after the Norwegian grid authority confirmed that Blastr will be unable to receive the grid capacity in the required time frame,” Blastr explains. The search for a suitable location remains ongoing.

‘’RBT is an attractive location, offering access to a deep-water port, good grid connection and access to the required utilities,” Hans Fredrik Wittusen, Blastr Green Steel’s CEO explains. “The Teesside industrial region offers potential synergies with companies developing green industries, including near-term projects to expand offshore wind, hydrogen and the development of the Net Zero Teesside industrial cluster.’’

Blastr has announced it will make a decision on the site for its new pellet plant by the end of this year, “to enable detailed engineering and permitting to commence.”

By 2025, it is expected that a final investment decision will be made for the DRI plant which has an estimated cost of $1.28 billion. Then in 2027, tentative plans are to initiate operations.

“RBT is keen to attract the project to our site which is directly adjacent to the port,” states Shaun Casey, the general manager of RBT. “We see an opportunity to bring highly skilled jobs and regeneration to the area through the construction of a modern pellet plant and the redevelopment of the port.”