Joint ventures and strategic alliances Model 1 These partnerships involve businesses in similar industries or value chains that formally collaborate to address shared sustainability challenges for mutual benefit. HYBRIT (Hydrogen Breakthrough Ironmaking Technology) is a transformative joint venture between three leading Swedish companies, sharing the investment and risk required to develop the technology in the value chain required for the industrial production of fossil-free steel.6 In 2016, Swedish steelmaker SSAB joined forces with LKAB (Europe’s largest iron ore producer) and Vattenfall (one of Europe’s largest energy companies) to develop the first fossil-free steel. HYBRIT replaces the current blast furnace process, reliant on coal and coke, with a fossil-free hydrogen gas-based process which emits water instead of CO2.7 Prompted by Sweden’s climate policy framework targeting zero emissions, HYBRIT originated from SSAB’s exploration of hydrogen-based steelmaking at scale. Further impetus came from Fossil Free Sweden, a government entity that coordinates sector initiatives and aligns government/business efforts. To help drive the transition of the value chain, SSAB sought out LKAB and Vattenfall, both state-owned companies. Their market power and influence were crucial: LKAB produces 80% of the EU’s and almost all of Sweden’s iron ore,8 while Vattenfall provides a significant portion of Sweden’s power capacity. In 2017, the three companies formally established Hybrit Development AB, a tech-development company, as an independent joint venture with equal ownership and balanced governance through a tripartite board. This structure pools skills and resources to harness synergies and share risks and investment. The Swedish Energy Agency and the European Union (EU) Innovation Fund have contributed financial support. The transition to HYBRIT technology in the value chain is expected to reduce Sweden’s CO2 emissions by more than 10% and Finland’s by 7%; there is also significant global potential. Volvo Group, Epiroc, Peab and others are already using HYBRIT’s fossil-free steel in vehicles, heavy machinery, buildings and consumer products. Moving from pilot to commercialization, the joint venture plans to: –Continue developing the technology for implementation of a fossil-free value chain at industrial scale. –Drive further R&D for industrialization, including supporting LKAB’s planned demonstration plant for hydrogen based direct reduction. –Extend the pilot-based development for large scale storage of hydrogen towards industrial implementation.CASE STUDY HYBRIT – Winner, 2025 GAEA Award for Moving Force in Business –Strategic value chain partnering. Each owner contributes complementary strengths, skills and resources, along with significant scale in its respective field, plus a willingness to share risk. –Development accelerated by collaboration. Close external and internal collaboration among project engineers and researchers from universities and research organizations enabled the pilot to reach its goals faster than anticipated.9 –Transformative impact potential. HYBRIT is on track to achieve the partners’ original long-term vision: to transform the industry in the value chain. Onsite fossil-free hydrogen production and future hydrogen storage is transferable to other industrial plants. Other hydrogen-based industries can also benefit from co-location.10Highlights The transition to HYBRIT technology is expected to reduce Sweden’s CO2 emissions by more than 10% and Finland’s by 7%; there is also significant global potential. Making Collaboration Work for Climate and Nature: Practical Insights from GAEA Award Winners 12