FAQ

Explore our frequently asked questions to quickly understand key details and resolve common issues.

Frequently asked questions

The process

  • There are several important differences. We use biomass such as forestry residues, biogenic coal, to produce synthesis gas consisting of carbon monoxide and hydrogen. The gas and iron pellets go through a so-called direct reduction reactor. The end result of the process is fossil-free fully carbonized DRI and liquid carbon dioxide. The liquid biogenic carbon dioxide can be used in other industrial processes and replace fossil sources.

    Early in the process, it also creates what is called biogenic BTX (benzene, toluene and xylene) which can be used to replace several fossil-based raw materials in the chemical sector. For example, methanol which currently comes from fossil-based sources.

  • The challenge of using fossil-free hydrogen from electrolysis as an input is that very large amounts of electricity are required to produce the gas.

  • The price of timber products affects our operations and calculations. The price of GROT and pulpwood has risen sharply in recent years, and we have taken this into account in our calculations.

    In our process, very little of the carbon-based raw material collected is consumed and the process therefore functions instead as a source of biogenic raw materials for other industries. The more the demand, and thereby the price for this increases, the greater the industrial logic for FerroSilva.

    Our business is to a very small extent affected, as our input is residual products from forestry, i.a. GROT that are left over. We neither buy nor produce value-added goods from wood and are therefore not exposed to the demand for value-added goods from wood.

  • Our process is not patented but parts of our manufacturing process are a trade secret. Our business concept is mainly based on the fact that we are the first in the world to have commercialised this way of producing fossil-free fully carbonized DRI. By being the first on the market, we are well placed to offer a competitive product in a rapidly growing market.  

Finance

  • FerroSilva is owned by a small number of private individuals who contribute to the company’s development in various ways, mainly the FerroSilva team.

  • Globally, about 150 million tonnes of DRI are produced per year. In the long term, traditional production, which currently takes place in very emission-intensive ways, will also have to switch to more low-carbon methods, which guarantees a growing two market DRI.

    At full production in our first factories of approximately 500 000 tonnes per year, we could meet 0.3 percent of the needs of a rapidly growing market. We therefore see great opportunities for growth.

  • The feasibility study underlying FerroSilva’s manufacturing process was funded by the Swedish Energy Agency, Sveaskog, Lantmännen, Ovako, Uddeholm and Alleima, as well as KTH, Chalmers, M3advice and Kobolde.

    To build our first plant, we are relying on a combination of private and public funding. We believe that within one year of the plant being built, we will be able to stand firmly on a fully commercial basis.

  • We are not a listed company and we have currently no plans of becoming listed.

  • Not at the moment. Right now we are mainly looking for investments from institutional investors.

Facts

  • Our process is more energy efficient than competing methods and therefore we will have lower production costs, both in comparison with traditional production and new processes based on hydrogen produced by electrolysis of water. Our manufacturing process requires around 90% less electricity than hydrogen-based manufacturing processes per tonne of DRI produced.

  • A life cycle analysis, according to ISO 14044, for steel production using DRI from the FerroSilva process was published 2023, shows a possibility to create a carbon sink of 845 kg carbon dioxide per tonne produced steel. Initially trees grow and absorb 1205 kg of carbon dioxide from the atmosphere. Subsequent processes create direct or indirect emissions of 360 kg of carbon dioxide. If we do not create a carbon sink and instead sell the liquid carbon dioxide we end up with zero carbon dioxide per tonne produced steel. As a result, the FerroSilva process can potentially, in both these scenarios have a massive impact on reducing emissions compared with both with traditional processes, based upon the usage of coal and blast furnaces and alternative methods using hydrogen or fossil natural gas.

  • FerroSilva will primarily use logging residues, tops and branches (GROT), but can also use pulpwood and sawmill residues (raw chips, dry chips and sawdust). There is a functioning market for these products. As for GROT, there are still areas where it is not extracted, but rots in the forest, which Svebio highlights for Sweden in its report. The report shows that 5 TWh of residues is used 2025. FerroSilva will use >2 TWh in our two first plants and thereby enable higher returns for the forest industry by making larger amounts of biomass profitable (+40%) to utilise than have been feasible historically. We create a win-win situation.

  • Yes, there is more than enough. In Sweden alone, from unutilised cut tops and branches in the forest, biomass decays and emits carbon dioxide equivalent to 65 TWh per year if it had been used for electricity generation (see Svebio’s report). This is equivalent to more than a third of all electricity consumed in Sweden per year. Our first plant will use about 0.2 TWh of biomass per year, equivalent to 75 000 tonnes. Furthermore, there is good access to biomass globally, for example in Northern Europe, North and South America and Southeast Asia. 

Sustainability

  • There are clear rules in the Forestry Act for where and how to remove GROT. These rules must of course be followed.

    The innovative FerroSilva process also offers the possibility of creating a carbon sink, negative emissions, which helps to reduce global emissions. Warming is a contributing cause of damage to biodiversity in Sweden and globally as a warmer climate provides conditions for the spread of invasive species and pests.

  • We demand that our suppliers are certified according to PEFC or FSC, two global certification systems for sustainable forestry. Our suppliers are also expected to be certified according to ISO9001, ISO14001 and ISO45001 or to have internal routines and a systematic work approach to quality, environmental management and work environment.

  • Storing carbon dioxide means reducing emissions. Thanks to the EU Emissions Trading Scheme (EU ETS), there is a price on emissions. The more a company emits, the more they have to pay by buying emission allowances. Replacing fossil fuel emissions with carbon dioxide therefore has a direct economic value. In addition, there is a growing importance of utilising biogenic carbon dioxide in many industrial processes. This becomes particularly important when consumers demand fossil-free products.

    Finally, there is an emerging market for electrofuels, which is particularly important in combination with surplus energy primarily from wind power. Such fuels are relevant if they are based on biogenic and circular raw materials.

    It is also possible for companies to reduce their carbon footprint by buying carbon dioxide and storing it permanently in the ground. As the price of emission allowances increases, the economic incentive to buy and store carbon dioxide grows. Such carbon dioxide counts as ’non-emitted’ in the Emissions Trading Scheme..

Plant

  • Our manufacturing process has great potential but is still commercially untested. To reduce the commercial risk, the government and EU plays an important role in the first phase by co-financing innovative new products and services. This is why we have applied for funding by the Swedish Energy Agencyand the EU Innovation Fund. Within a year of our plant being in place, our assessment is to operate on a fully commercial basis.

  • Our first plant is planned to be built in Finland or Sweden. The plant will be located close to potential customers where relevant infrastructure is available. At full capacity, we will produce 50 000 tonnes of DRI.

  • The market for fossil-free DRI is growing rapidly. To meet even a small part of this demand, more production capacity will need to be put in place. At present, our focus is on starting our first plant, but we are planning for 4 more establishments.

  • We believe that there is a low risk that the manufacturing process will not work on a larger scale. However, running in and optimizing the manufacturing process may take more time than anticipated.

Other

  • Both parts of our name come from Latin. Ferro or Ferrum means iron and Silva means forest. Together they summarise what we do: iron from forest residues.   

  • The demand for fossil-free DRI is increasing year by year. A growing market makes it economically feasible to invest in new low-carbon manufacturing methods. Our production is based on proven basic technologies and well-known chemical processes, while the combination of these is new. Therefore, there is low technical risk even if this does not mean that they are easy to link together in a well-functioning production process.

  • We have a more competitive product. This applies to both production costs and climate impact, and the product is carbonised for more efficient steel production. In addition, we supply biogenic products for industries that need them.

    FerroSilva is a young company, but we plan to grow rapidly to meet the high demand for DRI. FerroSilva also has close and important collaborations with several companies and partners that contribute to and facilitate our expansion.