Swedish steel manufacturer Ovako has opened a new energy-efficient furnace in Boxholm, investing SEK 60 million to cut energy consumption by 50% and CO2 emissions by 6,000 to 7,000 tons annually.

Romina Pourmokhtari, Minister for Climate and the Environment of Sweden, said the projects strengthen Sweden’s position in leading the world toward low-emission steel production.

President and CEO Marcus Hedblom said this technology can reduce emissions and ensure high-quality steel products with a minimal carbon footprint.

The furnace improves the company’s energy efficiency and can be operated on hydrogen in the future, aligning with Ovako’s long-term goal to cut carbon emissions by 80% from 2015 levels.