Green steel firm Blastr in talks over potential £1 billion Teesside factory

A Norwegian steel maker could bring a £1 billion factory to Teesside.

Blastr is in talks with Redcar Bulk Terminal to create a feedstock plant at the quay.

Bosses say the 150-job base, at the mouth of the River Tees, would supply converted iron ore pellets to a Finnish green steel production base.

A decision is expected later this year, with Blastr – which has signed a letter of intent with Bulk Terminal officials – also assessing a Norwegian location.

Operations could start in 2027.

Hans Fredrik Wittusen, Blastr chief executive, said the ongoing redevelopment of the former SSI UK steelworks into a green energy hub – which includes BP’s plans for huge hydrogen production factories – made Teesside an eye-catching proposition.

He said: “Redcar Bulk Terminal is an attractive location, offering access to a deep-water port, good grid connection and access to the required utilities.

“The Teesside industrial region offers potential synergies with companies developing green industries, including near-term projects to expand offshore wind, hydrogen and the development of the Net Zero Teesside industrial cluster.”

Shaun Casey, Redcar Bulk Terminal general manager, said: “We see an opportunity to bring highly-skilled jobs and regeneration to the area through the construction of a modern pellet plant and redevelopment of the port.”

According to Blastr’s blueprint, its proposed factory would send half its pellets to Finland, with the rest sold to market by Cargill Metals.

Jerry Hopkinson, executive chairman at PD Ports, which acts as statutory harbour authority for a 12-mile stretch of the River Tees, added: “This project sits right at the heart of the green revolution as the world develops cleaner manufacturing processes for fundamental commodities such as steel.

“We are looking forward to working with Blastr, Redcar Bulk Terminal and Cargill to seek to bring this huge investment to Teesside.”