American startup tests cheaper approach to producing green steel

American startup Hertha Metals has announced the successful testing of a new approach to steel production that minimizes emissions without increasing costs compared to traditional methods.

Hertha has developed a unique technology that converts low-grade iron ore of any format directly into molten steel or high-purity iron in a single step.

The company cites the key advantages of its one-step process.

• Access to cheaper and more abundant raw materials.
• Reduced energy consumption and emissions. The Hertha furnace is 30% more energy efficient than traditional steel production methods and requires much less energy than other electrochemical alternatives. Running on natural gas, the unit also cuts emissions by at least 50%. Designed as a flexible fuel system, it can run on pure hydrogen without any equipment modifications;
• Modular scalability. The Hertha system integrates directly into existing plants, without the need to build entirely new facilities.

Since the end of 2024, the company has been continuously operating a pilot plant in Houston with a capacity of 1 ton per day. Next year, Hertha will begin construction of a larger demonstration plant in Texas with an annual capacity of over 9,000 tons. Initially, the startup plans to supply high-purity iron (over 99.97%) to the US rare earth magnet market.

The transition to commercial production is expected by 2031, after which, according to the company, it will be able to produce “green” steel cheaper than traditional steel.

Transition to low-carbon steel production technologies will significantly increase electricity consumption, making its price a key factor in the competitiveness of future “green” solutions. This trend is particularly pronounced in technologies based on the use of hydrogen and electrolysis, according to the GMK Center study “EU electricity market: challenges for green transition in steel industry.”