Primetals Technologies, together with its partner Mitsubishi $8058 (-0,7%)the steel manufacturer voestalpine $VOE (+0,93%) and the mining group Rio Tinto $RIO (-1,8%) signed a cooperation agreement for the construction of an industrial-scale prototype plant for hydrogen-based iron production in Linz, Austria.
The aim of the partners is to drive forward the development of fluidized bed and smelting technologies that could lead to net-zero CO2 emissions in iron production. The plant, which is scheduled to go into operation in mid-2027, will be the first time that a hydrogen-based direct reduction plant for fine ore will be integrated with a smelting plant producing pig iron briquettes, pig iron and pig iron.
The prototype plant will combine two core technologies of Primetals Technologies - hydrogen-based fine ore reduction (HYFOR) and the smelter. HYFOR is the first DR technology for processing iron ore fines without agglomeration and has been in pilot operation at the voestalpine Donawitz site since 2021. The smelter uses renewable energy to melt and further reduce the direct reduced iron (DRI), producing pig iron with potentially zero CO2 emissions.
"This project represents a significant step forward in future-proof ironmaking - for the first time we will implement a continuous production process with hydrogen-based direct reduction," said Alexander Fleischanderl, Chief Technology Officer and Head of Green Steel at Primetals.
"The combination of HYFOR and Smelter is a highly innovative development that has the potential to change the industry, similar to how the LD converter (BOF) has impacted steel production. We are very proud to have voestalpine, Rio Tinto and Mitsubishi as strong partners and together we are able to play a key role in shaping the future of ironmaking with net CO2 emissions."
The new plant will have a capacity of three tons of pig iron per hour.
Mitsubishi, a strategic partner in the development, will support the expansion of the technology through its ferrous raw materials business. "Mining and trading of ferrous raw materials has been one of our core businesses for many decades, and we intend to develop a new range of low-emission metals to support the decarbonization of the steel industry," said Kenichiro Tauchi, COO of the Group's ferrous raw materials business.
"HYFOR and Smelter are promising new technologies to accelerate the decarbonization of the steel industry, and Mitsubishi Corporation is pleased to participate as a strategic partner of Primetals Technologies in the development of these breakthrough technologies together with leading partners in the steel supply chain."
voestalpine sees the project as being in line with its greentec steel strategy. "With greentec steel, voestalpine has a clear step-by-step plan for CO2-neutral steel production," says voestalpine CEO Herbert Eibensteiner.
"As a first step, a green electric arc furnace will be put into operation at both the Linz and Donawitz sites from 2027. By 2029, we will reduce our CO2 emissions by up to 30% compared to 2019. This corresponds to almost 5% of Austria's total annual CO2 emissions and makes greentec steel the largest climate protection program in Austria. Our long-term strategy is to achieve climate-neutral steel production with green hydrogen. Together with Primetals Technologies and Rio Tinto, we are taking a completely new and promising path in research into hydrogen-based pig iron production."
Rio Tinto, one of the world's largest iron ore producers, will supply 70% of the iron ore feedstock for the plant, sourced from its Pilbara operations, the Iron Ore Company of Canada and the future Simandou operations.
"We are pleased to join a consortium that covers the entire iron and steelmaking value chain," said Thomas Apffel, General Manager for Steel Decarbonization at Rio Tinto. "By contributing our ironmaking expertise and iron ore from the Pilbara, Iron Ore Company of Canada and the future Simandou operations, we aim to drive the development and adoption of fluidized bed technology. This fines-based ironmaking solution is a compelling alternative to shaft furnace technology as it eliminates the need for pelletization, which can offer significant benefits to both steelmakers and mining companies. Rio Tinto welcomes the addition of further participants to the consortium and looks forward to supporting the widespread adoption of this innovative technology."
The project has been supported by several EU and Austrian government initiatives. These include the Austrian Federal Government's "Transformation of Industry" program managed by Kommunalkredit Public Consulting (KPC), the "Twin Transition" initiative managed by Austria Wirtschaftsservice (aws), the EU Coal and Steel Research Fund under the Clean Steel Partnership and the EU's Clean Hydrogen Partnership under the Hydrogen Valleys.
