The groundbreaking ceremony at the voestalpine location in Linz marks the start of construction of Hy4Smelt. The industrial-scale demonstration plant is scheduled to commence first production by the end of the 2027 calendar year, with the research project ending in 2030. The total costs amount to around EUR 170 million.
The Hy4Smelt industrial-scale demonstration plant combines hydrogen-based direct reduction (HYFOR®) for ultra-fine iron ores with an electric smelting process (Smelter). The hot direct reduced iron (DRI) or hot briquetted iron (HBI) produced in the HYFOR process is melted in the Smelter, and the slag is separated in the process. This generates high-quality pig iron used for manufacturing sophisticated steel grades, similar to today’s blast furnace process. The slag serves as a raw material for further industrial processes, especially the cement industry.
“At voestalpine, we have already made a successful start on our path to the next generation of steel production. To achieve our long-term goal of net zero CO2 emissions in steel production by 2050, we are already researching several new processes in collaboration with partners from industry and science, and investing in projects that are breaking new ground in steel production. Seeing construction underway of the globally unique Hy4Smelt demonstration plant once again confirms our technological and innovative leadership, also in the field of green steel production,” said Herbert Eibensteiner, CEO of voestalpine AG.
One green-powered electric arc furnace will be put into operation at each of voestalpine’s sites in Linz and Donawitz starting in 2027. By 2029, voestalpine will be able to reduce its CO2 emissions by up to 30% compared to 2019. This represents almost 5% of Austria’s entire annual CO2 emissions, making greentec steel the largest climate protection program in Austria.
For the Hy4Smelt industrial-scale demonstration plant in Linz, Primetals Technologies has also formed a strategic partnership with Mitsubishi Corporation as a co-investor.
Rio Tinto will supply 70% of the iron ore for the Hy4Smelt plant, as well as provide technical support to the project. Rio Tinto will also support the development and future commercialization of the HYFOR and Smelter technologies.
The European flagship project Hy4Smelt is partly funded by Austrian (aws/Twin Transition and KPC/Transformation der Industrie) and European (RFCS/Clean Steel Partnership and Clean Hydrogen Partnership/Hydrogen Valleys) funding institutions. The scientific partner is K1-MET, one of the leading international metallurgical competence centers for the development of metallurgical and environmental technology processes.