Voestalpine has begun construction on Austria’s largest climate project

Construction has begun in Linz, Austria, on Hy4Smelt, the world’s first industrial-scale demonstration steel plant that will combine hydrogen direct reduction technology with an electric arc furnace. The project is being implemented at the facilities of Austrian steel producer voestalpine in cooperation with Primetals Technologies and international mining group Rio Tinto.

The cost of the work is around €170 million, making Hy4Smelt Austria’s largest climate research project. Production is scheduled to start at the end of 2027, with the program due to be completed in 2030.

The unique technology will combine HYFOR, a process for hydrogen reduction of ultra-fine iron ore, with smelting in a smelter. The result will be high-quality pig iron for the production of complex steel grades. The by-product, slag, will be used as raw material for the cement industry.

“The start of construction of Hy4Smelt confirms our innovative leadership position on the path to green steel production. We already have a clear plan to reduce CO2 and plan to cut emissions by 30% by 2029,” said voestalpine CEO Herbert Eibenstainer.

Primetals Technologies emphasizes that HYFOR and Smelter are capable of ushering in a new era of steelmaking, gradually replacing blast furnaces, which leave a significant carbon footprint. The company has also brought Mitsubishi Corporation on board as a co-investor for the project.

Rio Tinto will provide 70% of the ore for Hy4Smelt and technical support. According to Rafael Azevedo, a company representative, the new technology could be the key to a low-carbon future for the steel industry.

Hy4Smelt is partly funded by Austrian and European institutions, with the K1-MET center acting as a scientific partner. The project is set to become the flagship of the transformation of steel production in Europe.

It should be noted that voestalpine and VERBUND recently announced a large-scale expansion of the H2FUTURE hydrogen research project in Linz, which is considered one of the longest-running in the world. €16.4 million is being invested in the project to create systems for storing and purifying green hydrogen.