Old ships to become new buildings

– I am pleased that we can now use steel from old ships in new buildings. This can significantly reduce greenhouse gas emissions from construction, create new jobs in Norway and provide the European steel industry with a local and reliable supply of steel, says Minister of Climate and Environment Sigrun Aasland.

It works

– We know that buildings can be made using steel from ships because this has been tested in a number of pilot projects led by The Research Council of Norway, Siva and Innovation Norway. One example is a new eight-storey office building in Bergen. We are now supporting efforts to explore how new technology can make this commercially viable, says Astrid Lilliestråle, Director of Technology and Market Development at Enova.

Enova has approved up to 244 million Norwegian kroner in funding for Nordic Circles and Alsaker Stål, subject to the project being carried out. The funding will support the establishment of a circular value chain in which steel from decommissioned ships is recovered, cleaned, quality-assured and recertified for use in new buildings. The project is the largest circular economy project Enova has ever supported.

 – Steel production accounts for up to 25 percent of the greenhouse gas emissions associated with building construction. Reusing steel can eliminate almost all of these emissions overnight. I hope every property developer will seize this opportunity to help cut greenhouse gas emissions where it can truly make a difference, says John Jacobsen, CEO of Nordic Circles.

Using AI

The aim is to demonstrate that reused ship steel can become a competitive alternative to new steel in buildings. Among other things, the project will use AI-based planning tools, automation, and new methods for cutting and cleaning steel to make the process more efficient and scalable.

The construction sector accounts for a large share of global emissions and material use, and the production of new construction materials such as steel is a major source of emissions. By reusing steel, the project can help cut emissions from buildings and reduce the need for new steel production.

– We have great confidence in the project and find it rewarding to help build a new and sustainable industry in Norway, with the potential to generate major ripple effects throughout Europe. Together with Nordic Circles and Enova, we are therefore investing up to 520 million Norwegian kroner to bring the project to fruition, says Espen Løbø Solhaug, CEO of Alsaker Stål, part of Tertnes Holding.

10 million tonnes of steel scrapped every year

Every year, 10 million tonnes of steel from European ships are scrapped, mainly in Asia. If successful, the new project could therefore represent a significant industrial opportunity for Norway and Europe.

Enova estimates that recovering steel from decommissioned European ships could reduce emissions from European steel production by up to 17 million tonnes of CO₂ annually, provided that all the steel is used in new buildings. This is equivalent to more than one-third of Norway’s annual greenhouse gas emissions.