Peab and SSAB have taken the next step in their cooperation and now, together with Ruukki Construction and developer Wihlborgs, are presenting the world's first fossil fuel-free steel building in Lund, Sweden. The building's wall and roof structures were designed and constructed by Ruukki Construction. The building's components were made from SSAB steel produced without fossil fuels.
Introducing the world's first building made of steel produced without fossil fuels
© RUUKKI
Peab is now the first construction company to use fossil fuel-free steel in a project, the so-called fossil-free steel. The building (Tomaten 1) in Hasslanda, Lund, is a 6,000-square-meter industrial facility. SSAB steel made without fossil fuels was used in the production of sandwich panels by Ruukki Construction in Finland, used as wall cladding elements. The client and developer is the property's owner, Wihlborgs, while the tenant will be contract manufacturer Inpac.
We are extremely proud to be part of a historic change in our industry. The building is the starting point for extensive work to reduce the steel industry's impact on the climate. This is a truly collaborative building project, and Peab, together with Ruukki and SSAB, is further strengthening its position to meet the increasing demands of customers to choose more sustainable materials," says Jesper Göransson, CEO of Peab.
Introducing the world's first building made of steel produced without fossil fuels
© RUUKKI
It's amazing to be able to see how much progress can be made in sustainability when it's done together with others - the project with Peab and Ruukki shows what the possibilities are today. For SSAB, it's not just about reducing its own emissions with steel produced without fossil fuels, but also about contributing to reducing the carbon footprint elsewhere in the value chain, says Christina Friborg, director of sustainability at SSAB.
This project is a great example of how we can revolutionize construction together with our customers in the future. We are proud to contribute to the construction industry with our products that are not only made of fossil fuel-free steel, but also developed with sustainability and life cycle impact in mind, says Sami Eronen, CEO of Ruukki Construction.
We can only achieve the industry's goal of climate neutrality if we work together and jointly develop products and buildings that really make a difference. This project is an important step in the direction we are taking, and as a customer, we have the main responsibility for continuously raising our own requirements so that the entire chain is characterized by ambitious sustainability goals," says Ulrika Hallengren, CEO of Wihlborgs.
Introducing the world's first building made of steel produced without fossil fuels
© RUUKKI
Construction and civil engineering are striving to achieve climate neutrality by 2045, which requires the use of new materials and products with low climate impact in many areas. SSAB steel produced with HYBRIT technology will be on the market in 2026, enabling companies in the construction industry to dramatically reduce carbon emissions in the steel segment. HYBRIT technology means that iron ore is directly reduced using hydrogen and fossil-free electricity, unlike coal and coke, which are used in the blast furnace process. The byproduct is then water, not carbon dioxide.
Both Peab, through its partnership with SSAB, and Ruukki Construction, as a subsidiary of SSAB, have secured their access to fossil fuel-free steel and intend to use it in future projects from 2026. The new steel will contribute to long-term, sustainable growth in the industry and will be an important part of the climate transition for Sweden as a whole.
Together, the construction and real estate sectors currently account for about one-fifth of Sweden's national carbon emissions. In new construction, the vast majority of the climate impact comes from the production of materials and products. Creating the world's first steel building without fossil fuels is therefore a milestone for the entire industry.
Introducing the world's first steel building made without fossil fuels
© RUUKKI
Sweden's Minister of Climate and Environment, Romina Pourmokhtari (of the Liberal party) will visit the investment in Lund on Wednesday. Leading representatives of Peab, Wihlborgs, Ruukki Construction and SSAB, as well as representatives of local authorities, will be present at the press conference. The media have also been invited.
