A Norwegian steel company which had targeted Teesside for a huge £850million pellet plant now says it is considering a site in its own country instead.
In July, Blastr Green Steel signed a Letter Of Interest to explore the option of setting up at Redcar Bulk Terminal, Teesside to supply its steel plant being built in Finland.
At the time, Mayor Ben Houchen described the moment as a 'catalyst' for the site' and said: "This announcement is the culmination of a huge amount of work to make this happen and I look forward to supporting Blastr further to help bring high skilled jobs to the region."
While that plan is still under discussion, Blastr has now said it has signed another LOI with Lutelandet Offshore Site & Drydock and Htwo Fuel to explore Lutelandet on the west coast of Norway as an alternative location to supply feedstock to its ultra low CO2 steel plant being developed in Inkoo.
CEO Hans Fredrik Wittusen said: “Lutelandet is a highly attractive site."
So Teesside is now in a two-way battle for the plant, which will employ around 120 people and generate "a substantial number" of indirect jobs and economic activity in the surrounding area.
By considering two sites in parallel, Blastr says it will have 'optionality during the development process to optimise the value chain.'
A company statement said: "Blastr will work closely with its partners and relevant stakeholders at both Lutelandet and Teesside before making a final site selection targeted by the end of 2023".
The final investment decision for the pellet plant is expected in 2025, with a target for production to start in 2027. Blast says it will make 'estimated investments of over EUR 1 billion, subject to relevant permits and agreements'.
When the original announcement was made, there was no mention of the need for options, and Jerry Hopkinson, PD Ports Executive Chairman commented: “This project sits right at the heart of the green revolution currently taking place as the world develops cleaner manufacturing processes for fundamental commodities such as steel. PD Ports is looking forward to working with and supporting Blastr, RBT, and Cargill to seek to bring this huge investment to Teesside.”
Andy McDonald, MP for Middlesbrough, said it was "really exciting news".
The new pellet plant is a key part of Blastr’s integrated green steel value chain which has the potential to deliver more than 90% reduction of emissions compared to conventional steelmaking.
Hans Fredrik Wittusen, the CEO of Blastr Green Steel said: “Lutelandet is a highly attractive site for the production of feedstock to our steel plant with industrial infrastructure already in place, access to a North Sea deepwater port and clean renewable energy from hydropower and nearby wind farms."
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"We look forward to co-operating with our site partners and the surrounding community to further develop the Lutelandet option in order to accelerate the implementation of our pellet plant and optimise our integrated value chain for ultra-low CO₂ steel products.
Tor Gjertsen, Chairman of then rival to Teesside - LLOF Site & Drydock - said: “Blastr is a great fit for Lutelandet and will accelerate the development and co-operation between new green industries at our site.
"A pellet plant of this type and scale brings new competence, jobs, and significant investments to Lutelandet and the region."
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