Ship steel to be turned into buildings

Steel from decommissioned ships is set to get a new life in Norwegian buildings. A new Enova-backed project could cut emissions from construction by up to 25 percent and create new jobs in Norway.

Nordic Circles and Alsaker Stål have been awarded up to NOK 244 million by Enova. The funds will be used to build a circular value chain. In this chain, steel from decommissioned ships is extracted, cleaned, quality-assured, and recertified for use in new buildings. It is the largest circular economy project Enova has ever supported.

The idea isn’t new. Ship steel has already been used in several pilot projects.

“We know that constructing buildings from ship steel works because it has been tested in a number of pilot projects run by the Research Council of Norway, SIVA, and Innovation Norway. Among other things, it has been done in a new eight-story office building in Bergen. Now we’re supporting efforts to explore how new technology can make this profitable enough,” says Astrid Lilliestråle, Department Director at Enova.

Where the Emissions Are

According to Nordic Circles, steel production accounts for up to 25 percent of the greenhouse gas emissions from constructing buildings. This is where the project believes it can make major strides.

“With reused steel, almost all of these emissions can be eliminated overnight. I hope every property developer seizes this opportunity to help cut emissions where it truly makes a difference,” says John Jacobsen, CEO of Nordic Circles.

The project aims to show that ship steel can compete with new steel. Among other things, it will use AI-based planning tools, automation, and new methods for cutting and cleaning steel. All to make the process more efficient and scalable. Alsaker Stål, part of Tertnes Holding, is investing up to NOK 520 million in the project together with Nordic Circles and Enova.

Ten Million Tons a Year

According to Enova, 10 million metric tons of steel from European ships are scrapped every year, mainly in Asia. If the project succeeds, it could open up a significant industrial opportunity for Norway and Europe, the state-owned enterprise says.

Enova’s estimates suggest that recycling ship steel could save up to 17 million metric tons of carbon dioxide annually from European steel production if all the steel went into new buildings. That is equivalent to more than a third of Norway’s annual greenhouse gas emissions.