A green steel company has expressed interest in establishing a plant at Teesside.

Blastr, a Norwegian organisation, have been looking for a site for a pellet plant to supply a steel plant being built in Finland.

They have signed a letter of interest to explore the option of setting up at Redcar Bulk Terminal, Teesside.

Ben Houchen, Tees Valley Mayor, has described the moment as a 'catalyst' for the site to attract new low CO2 iron and steelmaking companies.

He said: "The decision by Blastr to shortlist the Redcar Bulk Terminal site in Teesside as a potential location for its pellet plant is exciting news.

"This could be the catalyst for Teesside to attract new low-CO2 iron and steelmaking and shows how we are working hard to put in place the building blocks for a future of green steel industry in the region.

"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."

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Blastr aims to decarbonize the steel industry by using local raw materials and fossil-free energy.

Half of the pellets produced will be sent to Finland and the other half will be distributed to the world market.

The decision for the site of the plant will be decided during the second half of 2023.

Andy McDonald, MP for Middlesbrough, said: "This is really exciting news. Having visited a Hybrit, a Green Steel public/private company in Sweden recently, as a member of the Business and Trade Committee, it is really exciting to hear that Redcar Bulk Terminal is in the running to be the location for converting iron ore into Direct Induction Pellets otherwise known as “Sponge Iron” which is critical in securing ultra-low CO2 emission.  

"This is a major step in reducing carbon emissions in the steel industry which is responsible for around 8% of global greenhouse emission. 

"Huge congratulations to all those who have done so much hard work at Blastr, at RBT and PD Ports to get the discussion to this point and I wish them well in bringing this important steel and net zero project to Teesside and the jobs that go with it.” 

The total investment for the plan is estimated to be around £1bn with the suggestion that the plant would be up and running in 2027.

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In total, the factory will employ approximately 150 people.

Blastr Green Steel CEO Hans Fredrik Wittusen commented: "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."