Scandinavian Ocean Minerals Wants to Help EU Meet CRM Needs, CEO says
SOM CEO Lindberg tells ECI its projects align with EU's CRM Act
Swedish-based Scandinavian Ocean Minerals (SOM) aims to help Europe meet its future critical raw materials needs for the green economy by harvesting seafloor resources, the company's CEO, Peter Lindberg, said in response to written questions.
SOM has projects in Bothnian Bay and the Baltic Sea within Sweden's Exclusive Economic Zone (EEZ). In Bothnian Bay, SOM is harvesting poly-metalic nodules while oxygenating the seafloor and counteracting acidification. In its Baltic Sea project, SOM is harvesting sediments that can be refined into green energy.
These projects could eventually source the critical raw materials (CRMs) required for Europe’s green energy transition.
By 2030, the European Union (EU) aims to meet 25% of its critical mineral needs through recycling rather than imports, making it a viable long-term solution to the bloc's raw material supply challenges, including sourcing 100% of its heavy rare earth elements from China.
“Our efforts align with the EU's Critical Raw Material Act and Chip Act, aiming to reduce dependency on imports,” Lindberg said in response to written questions. “Our projects could supply a significant amount of critical minerals currently imported to the EU.”
While the company has no immediate plans to become publicly listed, this is a “possibility we might consider in the future,” Lindberg said. To reach the stage where the company can apply for an extraction permit, it will “need to raise at least €5 million more,” he added.
Environmentally, SOM aims to halt and eventually reverse eutrophication, an environmental concern that often results in the deterioration of water quality and the depletion of dissolved oxygen in water bodies affecting the Baltic Sea. This will benefit all nine surrounding countries, Lindberg said.
After exploring Europe’s efforts to diversify its sources of CRM, European Capital Insights (ECI) requested an interview with Lindberg to dig deeper into the company's plans to meet the future needs of the green economy. Here is the rest of the interview.
SOM Interview:
ECI: How did you come up with the idea of starting Scandinavian Ocean Minerals? What was the trigger behind the concept?
SOM: The idea emerged from a collaboration with Professor Tom Flodén, a marine geology expert. While working on a different project, Tom handed me a USB stick one day and said, "Take a look at this; it might be worth investigating."
The USB stick contained a doctoral thesis by Johan Ingri, now a Professor Emeritus at Luleå University of Technology. Written in the early 1980s, the thesis examined the presence of manganese nodules in the Bay of Bothnia. Funded by the Swedish government during the Cold War, the research aimed to explore potential domestic mineral resources.
Ingri's extensive sampling revealed significant concentrations of manganese nodules, with estimates of at least 40 kilograms per square meter. A 2006 Russian report also found even higher concentrations in the Finnish Bay, around 113 kilograms per square meter. This groundbreaking research laid the foundation for our company.
ECI: How does your technology differ from other types of sea mining? Is it applicable to other ecosystems outside of the Baltic? Is it applicable to other types of mineral formations?
SOM: Our technology is designed to be environmentally friendly from the start. The core concept involves oxygenating the seabed by circulating water exposed to air. This approach addresses the urgent need to remove oxygen-free, phosphorus-releasing sediments in the Baltic Sea, contributing to eutrophication. Unlike temporary solutions like oxygen pumping or chemical dumping, our method offers a long-term remedy by eliminating the phosphorus source.
The sediment is a valuable resource, containing 10-20% organic material for green char or biogas, 50-60% silt for concrete, and about 20% silicon needed for electronics and steelmaking. Given the shallow depths of the Baltic Sea and the Bay of Bothnia, we use pressurized air to create suction at the seabed, efficiently oxygenating the water.
This method is adaptable for extracting manganese nodules and oxygen-free sediments, with surface processes differing for each.
ECI: Coastal communities are usually skeptical about maritime industrial activities. Have you explored economic benefits and job creation as a factor that might win over their support? What are the numbers behind the project?
SOM: Our project promises significant benefits, including job creation. The nodule project alone will employ several hundred people, with similar numbers expected for the Baltic Sea project, depending on the number of sediment retrieval units deployed. Environmentally, our work aims to halt and eventually reverse the eutrophication affecting the Baltic Sea, benefiting all nine surrounding countries.
Removing manganese nodules in the Bay of Bothnia is expected to improve marine life conditions. Higher concentrations of nodules correlate with fewer marine species, so their removal could foster a healthier ecosystem. We are collaborating closely with universities and maintaining transparency through independent research programs. Our government-granted pre-exploitation survey permit indicates official support and compliance with Swedish law.
Our efforts align with the EU's Critical Raw Material Act and Chip Act, aiming to reduce dependency on imports. Our projects could supply a significant amount of critical minerals currently imported to the EU from BRICS countries.
ECI: The mining sector seems to be divided about sea mining. Some countries like Norway and Japan are making steadfast progress, while others have signed moratoriums pending further research. What do you expect from the incoming International Seabed Authority's sea mining regulation?
SOM: Swedish law operates independently of ISA regulations. We have already secured a survey permit, the first step toward obtaining an extraction permit. Our operations are confined to Sweden's Exclusive Economic Zone (EEZ), not international waters, ensuring compliance with national regulations.
ECI: Do you have any plans beyond the full-scale production in 2028? Are you interested in expanding, licensing your know-how, or even becoming a publicly listed company?
SOM: We see numerous opportunities beyond our current projects. Our methods could benefit other regions facing eutrophication. We are pursuing patents for both our extraction and refining techniques and have received a "Freedom to Operate," allowing us to proceed with patent applications.
In collaboration with partners such as Skellefteå Kraft for energy and Skellefteå Kommun for industrial land, we aim to establish an industrial hub in Skellefteå for sustainable marine mineral refining.
While we have no immediate plans to become a publicly listed company, it is a possibility we might consider in the future.
ECI: Do you have enough funds to carry out your plans, or will you seek additional financing?
SOM: Since January 2020, our company has had a turnover of approximately €2.5 million. Still, many more man hours from our managing team and the board have been invested in the company, achieving significant progress on a limited budget.
To reach the stage where we can apply for an extraction permit, we need to raise at least €5 million more. Post-approval, we estimate a substantial need for funds to commence operations. The refining process costs will align with those of any new industry.
We strongly believe that our business will reach significant revenue by 2030. With the nodules in the Bay of Bothnia and other marine minerals, we can sustain the business for well over 20 years.