‘Huge investment’ and 150 jobs possible as green steel firm, Blastr, announce they have chosen Redcar Bulk Terminal port as a potential new location for a new steel pellet plant!
Exciting news for Redcar and Cleveland as Norwegian green steel company, Blastr, plans to decide on their new pellet plant location during the second half of 2023, which allows detailed engineering and permitting to start. Blastr expects to make the final investment decision for the plant, estimated at over £1 billion, in 2025, subject to relevant permits and agreements, with a tentative plan to start operations in 2027. If plans go ahead, the Teesside factory will be used for converting iron ore pellet feed into direct reduction pellets.
Blastr said it will produce six Mt high-quality DR pellets as feedstock for its ultra-low CO2 steel plant planned in Inkoo, Finland. Approximately half of the pellet volumes will go to Blastr’s steel plant at Inkoo, while the rest will be sold by Cargill Metals for distribution to the growing world market for DR pellets.
Chief executive officer Hans Fredrik Wittusen said: ‘’RBT is an attractive location, offering access to a deep-water port, good grid connection, and access to the required utilities. 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.’’
The plant and port operations will employ approximately 150 persons, in addition to reportedly providing significant indirect employment opportunities and economic benefits for Teesside.
Jerry Hopkinson, PD Ports executive chairman added: “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.”
