Stegra, Port of Narvik and Kaunis Iron Explore New Pelletizing Plant

Narvik, Norway – Stegra, in cooperation with the Port of Narvik and Kaunis Iron, is pleased to announce a collaborative effort to study the feasibility of a new pelletizing plant to be potentially located at the site of the old airport in Narvik. This forms part of a newly signed Memorandum of Understanding whose objective it is to secure a sustainable local supply of DR pellets.

The project is part of Stegra’s more extensive moves to complement operations in Boden, where the group will also produce green iron, green steel, and green hydrogen. A glance at the pelletizing facility has come amid growing global demand for DR pellets, driven by the greener practices of the steel industry.

The collaboration between Narvik municipality, the Port of Narvik, and Kaunis Iron is an exciting opportunity for us at Stegra,” says a company spokesperson. “We are committed to investigating the potential of local production not only to meet our needs but also to contribute positively to regional economy and the environment.

Situated next to the current Port of Narvik, it ensures the best possible conditions for logistics and distribution, which, in turn, may optimize operations and decrease emissions linked with transport.

The demand for DR pellets is growing by leaps and bounds as the steel industry is in the process of reducing its carbon output, and DR pellets play a major role in the production of low-emission steel. This project is an attempt at preparation for that demand, furthering the efforts of sustainability within industries.

The partners will now conduct detailed studies relative to project viability from a technical-economic point of view, taking into account minimal environmental impact and in harmony with local community interests.

The MoU is considered an important milestone in Stegra’s vision of a greener future, and further updates on the project are expected as investigations unfold.

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