SKF announced a strategic investment in Anferra, a startup developing technology to recycle hazardous steel grinding sludge into secondary resources. The investment was made alongside Stephen Industries and Chalmers Ventures. SKF said the investment is the first initiative from SKF Ventures, the company’s program focused on accelerating new innovations.
Anferra is developing a process that converts steel grinding sludge into ferric chloride, a chemical agent used in wastewater and water treatment. The process also produces hydrogen gas as a by-product, which can be used as an energy carrier.
Grinding sludge is generated during metal grinding operations and consists of metal particles, abrasives, and contaminated grinding emulsion. It is commonly classified as hazardous waste, with much of the non-recycled volume handled through incineration or landfill.
SKF said about 12 million tonnes of grinding sludge are produced globally each year, creating environmental risks and significant costs for industrial companies. The variability of sludge composition has also made standardized recycling difficult.
Anferra’s process is designed to achieve up to 90% iron recovery with significantly lower energy demand. The technology could deliver a potential net climate benefit of negative 470 kg CO₂-equivalents per tonne of sludge compared to conventional disposal.
The process has the potential to shift grinding sludge from being treated as hazardous waste toward becoming a secondary raw material. SKF said this aligns with European Union efforts to harmonize waste regulations and strengthen the market for secondary raw materials.
The investment brings together complementary capabilities from the three investors. SKF contributes industrial application knowledge, waste stream volume, and sustainability experience. Stephen Industries brings expertise in scaling high-impact deeptech and greentech ventures. Chalmers Ventures adds venture-building capabilities and connections to the research ecosystem.
SKF said the investment positions the company as an early mover in circular recycling innovation and supports the creation of new value from industrial waste streams.
The company already applies circularity principles across its operations, including bearing remanufacturing and circular oil use through RecondOil. SKF is also exploring recycled steel solutions with ultra-low emissions and hydrometallurgical methods to reduce resource loss and support a more circular industrial ecosystem.
KEY QUOTES:
“Grinding sludge is one of the toughest recycling challenges in the steel and bearing industry. Anferra’s approach represents a smarter way forward and positions us well to drive circularity and decarbonization. This investment, which is the first initiative coming out of SKF Ventures – SKF’s initiative to accelerate new innovations, enables us to influence solution development, positioning SKF as a first mover in circular recycling innovations and creating new value from waste streams.”
Mikael Krook, Director of SKF Ventures
“We are very happy to deepen our collaboration with SKF through this investment. SKF has been an important partner since the early stages of Anferra’s development and with their support and close collaboration, we can accelerate our journey toward industrial implementation around the world. Our ambition is to significantly reduce the landfilling of grinding sludge while increasing circularity and resource efficiency on a global scale.”
Ebba Adolfsson, CEO and Co-Founder of Anferra
