Gothenburg, Sweden: Global engineering company SKF has announced a strategic investment in Swedish cleantech startup Anferra AB, alongside Stephen Industries and Chalmers Ventures, to accelerate the commercialization of an innovative recycling technology that converts hazardous steel grinding sludge into valuable industrial products.
- Tackling a 12 Million-Tonne Industrial Waste Challenge
- Producing Water Treatment Chemicals and Green Hydrogen
- Negative Carbon Impact Supports Climate Goals
- SKF Launches Ventures Initiative
- CEO Highlights Global Circular Economy Opportunity
- Strong Industry Partnership to Accelerate Commercialisation
- Circular Economy Gains Momentum Across Manufacturing
- Outlook
The investment marks the launch of SKF Ventures, the company’s new initiative to support industrial innovations that advance sustainability and the circular economy. Anferra’s technology addresses one of the steel industry’s biggest environmental challenges by transforming hazardous grinding waste into ferric chloride for water treatment and hydrogen gas for clean energy applications.
According to the companies, the process delivers a net climate benefit of negative 470 kilograms of CO₂ equivalent per tonne of grinding sludge processed, compared with conventional disposal methods such as landfill or incineration.
Tackling a 12 Million-Tonne Industrial Waste Challenge
Steel grinding sludge is generated during metal grinding operations and contains a complex mixture of steel particles, abrasives, oils, and contaminated grinding fluids. Due to its hazardous nature and inconsistent composition, the material is difficult to recycle using conventional methods.
Globally, an estimated 12 million tonnes of grinding sludge are produced every year, with a significant portion ending up in landfills or incineration facilities, resulting in high disposal costs and environmental impacts.
Anferra’s proprietary process is designed to recover up to 90% of the iron content from the waste while significantly lowering energy consumption compared to traditional recycling methods.
Instead of treating grinding sludge as hazardous waste, the technology converts it into commercially valuable products, creating a circular solution for manufacturers while reducing greenhouse gas emissions.
Producing Water Treatment Chemicals and Green Hydrogen
The recovered iron is processed into ferric chloride, a chemical widely used in municipal and industrial wastewater treatment plants to remove impurities from water.
At the same time, the process generates hydrogen gas, which can be used as a clean energy carrier across industrial applications.
By producing two marketable products from industrial waste, the technology creates new revenue opportunities while reducing disposal costs for manufacturers in the steel, bearing, and metalworking industries.
Negative Carbon Impact Supports Climate Goals
One of the most significant aspects of Anferra’s technology is its reported climate performance.
The company says every tonne of grinding sludge processed through its system results in a net reduction of 470 kilograms of carbon dioxide equivalent, making the process carbon-negative.
The reduction is achieved through avoided landfill emissions, lower energy consumption, recovery of valuable metals, and the production of useful industrial chemicals that replace conventionally manufactured alternatives.
As industries worldwide face increasing pressure to reduce emissions and improve resource efficiency, circular recycling technologies are becoming increasingly important in achieving sustainability targets.
SKF Launches Ventures Initiative
The investment represents the first project under SKF Ventures, a new investment platform established to identify and accelerate industrial technologies that support circular manufacturing and decarbonisation.
SKF believes grinding sludge remains one of the industry’s most difficult recycling challenges.
Mikael Krook, Director of SKF Ventures, said:
“Grinding sludge is one of the toughest recycling challenges in the steel and bearing industry. Anferra’s technology represents a smarter way to recover valuable resources while reducing environmental impact.”
The partnership also enables SKF to integrate innovative recycling solutions into its own manufacturing operations while supporting broader industry adoption.
CEO Highlights Global Circular Economy Opportunity
Ebba Adolfsson, Chief Executive Officer and Co-founder of Anferra, said:
“SKF has been an important partner since the early stages of Anferra’s development. This investment will accelerate our journey toward industrial implementation globally and help significantly reduce grinding sludge landfilling while improving circularity and resource efficiency.”
The company aims to scale its technology internationally as industries seek more sustainable waste management solutions.
Strong Industry Partnership to Accelerate Commercialisation
Alongside SKF, the investment consortium includes Stephen Industries, which specializes in scaling deep-tech and sustainability businesses, and Chalmers Ventures, one of Scandinavia’s leading venture development organizations connected to Chalmers University of Technology.
Together, the partners will support technology development, industrial deployment, and commercial expansion.
The collaboration combines industrial expertise, venture capital, engineering research, and manufacturing experience to accelerate commercialization.
Circular Economy Gains Momentum Across Manufacturing
The investment aligns with broader European sustainability policies that encourage industries to recover valuable materials from waste while reducing landfill dependency.
The European Union’s circular economy strategy and Critical Raw Materials initiatives are increasing demand for technologies capable of converting industrial waste into secondary raw materials.
If successfully deployed at scale, Anferra’s technology could help manufacturers reduce hazardous waste disposal costs, improve resource efficiency, and strengthen supply chains for critical industrial materials.
Outlook
Industrial manufacturers are increasingly seeking technologies that deliver both environmental and economic benefits.
By converting hazardous grinding sludge into valuable chemicals and clean hydrogen while significantly reducing carbon emissions, Anferra represents a new generation of circular economy startups focused on transforming industrial waste into profitable resources.
With support from SKF Ventures and its investment partners, the company is expected to accelerate commercial deployment and expand the adoption of sustainable recycling solutions across the global steel, bearing, and manufacturing industries.
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