In a landmark move for the global steel industry, a powerful consortium—Primetals Technologies, Mitsubishi Corporation, Rio Tinto, and voestalpine—is building the world’s first integrated industrial-scale hydrogen-based direct reduction and smelting plant in Linz, Austria. Scheduled for launch in mid-2027, the facility promises to redefine iron and steel production through a near-zero carbon process that eliminates the use of coal.
“This project represents a significant advancement in future-proof ironmaking – for the first time, we will implement a continuous production process with hydrogen-based direct reduction,” said Alexander Fleischanderl, CTO and Head of Green Steel at Primetals Technologies.
The breakthrough plant will merge two innovative technologies:
- HYFOR (Hydrogen-based Fine-Ore Reduction): The only commercial direct reduction process that operates using iron ore fines directly—eliminating the need for energy-intensive pelletisation.
- Smelter: Uses renewable electricity for final metallurgical conversion, producing hot metal, hot briquetted iron (HBI), and pig iron with potential net-zero emissions.
This closed-loop, fossil-free route could replace traditional blast furnaces, offering a radical shift in how steel is made—mirroring the disruption caused by the LD converter (Basic Oxygen Furnace) in the 20th century.
Strategic Collaboration Across the Steel Value Chain
- Rio Tinto will provide 70% of the iron ore feedstock, leveraging its global mining assets such as Pilbara (Australia) and Simandou (Guinea). It also brings technical knowledge of ore processing and low-carbon innovation.
- Mitsubishi Corporation will support raw materials logistics and strategic project development. Its involvement reflects growing Asian-European cooperation in decarbonized industrial infrastructure.
- voestalpine, the Austrian steelmaker hosting the project, is positioning the facility within its broader greentec steelstrategy, aiming to cut its emissions by 30% by 2029—equivalent to 5% of Austria’s total CO₂ footprint.
Public and EU Support
The project receives financial backing from Austria’s “Transformation of Industry” fund and two major EU initiatives:
- The Clean Hydrogen Partnership, which supports low-carbon hydrogen infrastructure.
- The Clean Steel Partnership, which focuses on decarbonizing Europe’s steel clusters.
Beyond emissions reductions, the plant is expected to:
- Reduce operational costs by cutting the need for pellet production.
- Diversify raw material inputs through fines-based processing.
- Drive industrial decarbonization across European value chains—from construction to automotive.
The HYFOR-Smelter project sets a new benchmark for scalable, clean steelmaking. If proven successful, it could accelerate global efforts to meet net-zero targets, lower industrial dependence on coal, and establish hydrogen as the backbone of heavy industry’s low-carbon future.
