Peab claims it is the first company to use fossil-free steel in a construction development. Credit: Stefan Olsson/Ruukki Construction/Cision.

Nordic builder Peab, in partnership with steel company SSAB and its subsidiary Ruukki Construction, is constructing a new building using fossil-free steel in Sweden.

Tomaten 1 is a 6,000m² industrial complex in Hasslanda, Lund.

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Peab is building the property for owner Wihlborgs and contract manufacturer Inpac as the tenant.

With this project, Peab says it has become the first construction company to use fossil-free steel in a construction project.

Ruukki designed and built the building’s wall and roof structures.

The fossil-free (SSAB-provided) steel was used to fabricate sandwich panels for the building walls.

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Ruukki president Sami Eronen said: “This project is an excellent example of how going forward we can revolutionise construction together with our customers.

“We’re proud to be involved in driving the construction industry forward with our products that are not only made with fossil-free steel, but also developed with sustainability and the entire life-cycle impact of the product in mind.”

SSAB steel, which is produced with HYBRIT technology, will reach the market in 2026, allowing construction businesses to minimise carbon dioxide emissions produced in the steel industry significantly.

Peab, via its partnership with SSAB and Ruukki, has obtained access to this fossil-free steel and plans to employ it in future projects beginning in 2026.

Peab CEO Jesper Göransson said: “The building is a starting point for work to reduce the climate impact in the steel industry on a broad front.

“It’s a real community building project and, together with Ruukki and SSAB, Peab is now further strengthening itself to meet its customers’ growing demands for more sustainable material choices.”