TY  - RPRT
        AU  - Henrekson, Magnus
        TI  - HYBRIT: A Hubristic Hydrogen-Based Steel Project
        PY  - 2026/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 18359
        UR  - https://www.iza.org/publications/dp18359
        AB  - This study critically examines HYBRIT, a Swedish flagship project led by state-owned LKAB to produce fossil-free sponge iron using hydrogen from fossil-free electricity. Framed as central to EU’s green transition, HYBRIT promised CO₂ cuts exceeding Sweden’s total emissions but faced major technological, economic, and infrastructural hurdles. The analysis situates HYBRIT within broader “moonshot” policies, prone to political enthusiasm, rent-seeking, and neglect of opportunity costs. The project required large-scale hydrogen production, storage, and process adaptation, unproven at commercial scale. Profitability depended on persistently low electricity prices and high CO₂ costs while global competition in green steel intensified. Electricity constraints in northern Sweden further strained feasibility. Political, regional, and corporate interests nonetheless aligned behind HYBRIT, aided by limited scrutiny of state-owned firms. Mounting criticism and shifting priorities ultimately led LKAB to defer its sponge iron plans indefinitely, pivoting toward high-grade ore and critical minerals. The case highlights the risks of mission-oriented policies when political symbolism outweighs technological and market realities.
        KW  - green deals
KW  - green steel
KW  - hydrogen
KW  - mission-oriented policies
KW  - moonshots
KW  - public choice
KW  - rent-seeking
        ER  -