Construction on Austria’s largest climate action research project starts

“There’s still a lot to learn, but we’re optimistic about the potential of fluidized bed and electric smelting technologies to support the steel industry’s transition”

Primetals Technologies, voestalpine and Rio Tinto are taking a promising approach to researching steel production with net zero CO2 emissions.

A groundbreaking ceremony has taken place at voestalpine’s Linz site to mark the start of construction of Hy4Smelt—the world’s first industrial-scale demonstration plant capable of combining two innovative technologies: a hydrogen-based direct reduction process for ultra-fine iron ores and an electric smelting process. The industrial-scale demonstration plant is scheduled to commence first production by the end of the 2027, with the research project ending in 2030. The total costs amount to around €170 million. Hy4Smelt is therefore the largest climate action research project in Austria. 

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. 

Herbert Eibensteiner, CEO of voestalpine AG, said, “For many years, voestalpine has been considered an environmental benchmark in the industry, and the company has a clear phased plan to transform its steel production through greentec steel. One green-powered electric arc furnace will be put into operation at each of the company’s sites in Linz and Donawitz starting in 2027. By 2029, voestalpine will have been 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.  

“Today’s groundbreaking ceremony marks a decisive step towards carbon-neutral steel production. We are introducing technology solutions with the potential to revolutionize the entire industry,” explains Dr Alexander Fleischanderl, head of green steel at Primetals Technologies. “The steel industry needs to break new ground. Coal-fired blast furnaces, for centuries the backbone of steel production, are placing a significant and growing burden on the environment. This is where HYFOR and Smelter come in: These solutions pave the way for a new era in steel production.”

For the Hy4Smelt industrial-scale demonstration plant in Linz, Primetals Technologies has also formed a strategic partnership with Mitsubishi Corporation, an integrated trading and investment company, as a co-investor.

Rio Tinto will supply 70% of the iron ore for the Hy4Smelt industrial-scale demonstration 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. 

“It’s fantastic to see construction now underway for the Hy4Smelt industrial-scale demonstration plant in Linz. This milestone builds on the momentum from April and reflects the strong collaboration across the consortium. By contributing our iron ores and technical expertise, we’re helping to explore new pathways for low-emissions ironmaking. There’s still a lot to learn, but we’re optimistic about the potential of fluidized bed and electric smelting technologies to support the steel industry’s transition,” says Rafael Azevedo, General Manager, Iron Ore Sales and Marketing Atlantic, Rio Tinto. 

The HYFOR (hydrogen-based fine-ore reduction) process, a cutting-edge technology developed by Primetals Technologies, has been in operation at a pilot plant at the voestalpine site in Donawitz since 2021. Combined with the new Smelter from Primetals Technologies, these two technologies are now being used in industrial applications for the first time as part of the Hy4Smelt project. The hydrogen required for direct reduction at the Hy4Smelt plant comes from the world’s longest-running PEM electrolysis plant H2FUTURE at the Linz site. As part of the H2FUTURE Follow-up project, in partnership with Verbund the previous research activities on hydrogen production are being systematically continued with regard to purity, pressure increase and storage.