Hydrogen Steel Plant Set To Launch In Austria 2027

In a groundbreaking move towards decarbonizing steelmaking, a global consortium including Primetals Technologies, Mitsubishi Corporation, Rio Tinto, and voestalpine is building an industrial-scale hydrogen-based ironmaking facility in Linz, Austria. Due to open operations in mid-2027, this pioneering initiative combines HYFOR (Hydrogen-based Fine-Ore Reduction) with a Smelter, making it possible to produce steel with almost zero carbon dioxide emissions.

The venture, funded by the Austrian government's "Transformation of Industry" program and the European Union's Clean Steel and Hydrogen Partnerships, is universally regarded as a game-changer for the international steel industry. Supported by strategic collaborations embracing the entire steel value chain—from raw materials through technology to processing—the plant will transform ironmaking by substituting coal with renewable electricity and hydrogen.

At the core of the innovation is HYFOR, the globe's first direct reduction technology intended to treat iron ore fines without pelletization. This not only saves energy and costs but also provides a more sustainable option to conventional shaft furnace technology. The Smelter, fueled by renewable electricity, conducts the final step of reduction, yielding hot metal, hot briquetted iron, and pig iron—all without the use of fossil fuels.

"This project is a milestone in future-proof ironmaking," stated Alexander Fleischanderl, CTO and Green Steel Head at Primetals Technologies. "We will, for the first time, use a continuous production process with hydrogen-based direct reduction. The integration of HYFOR and Smelter is a very innovative development that can revolutionize the industry, as the LD converter did in the 20th century for steel production."

HYFOR-Smelter is not simply technology—it's about re-orienting the global steel value chain. Global mining giant Rio Tinto will provide 70% of the iron ore needed for the venture and import technical expertise from around the world, including its operations in the Pilbara and Simandou districts. Thomas Apffel, Rio Tinto's General Manager Steel Decarbonisation, underscored the advantage of skipping over pelletization. This fines-based ironmaking option provides an attractive alternative to shaft furnace technology," he added.

Mitsubishi Corporation has partnered the initiative as a strategic partner dedicated to providing decarbonized raw materials. The Japanese conglomerate sees the project as a bright move towards sustainable steelmaking. "HYFOR and Smelter are new promising technologies to accelerate the decarbonization of the steel industry," Mitsubishi Corporation Ferrous Raw Materials Division COO Kenichiro Tauchi stated. "We are excited to participate."

The host for the plant is Austria's voestalpine AG, a leading European steelmaker which is actively working to implement its "greentec steel" plan for cutting carbon emissions by 30% by 2029—equivalent to 5% of Austria's total CO2 emissions. CEO Herbert Eibensteiner emphasized the importance of the collaborative effort, saying, "Together with Primetals Technologies and Rio Tinto, we are taking an entirely new and promising approach to research into hydrogen-based pig iron production."

The significance of this project goes beyond the boundaries of the steel sector. With the world's steel production accounting for around 8% of overall CO2 emissions, the potential of HYFOR and the Smelter to reduce emissions is a vital step forward for the climate agenda. Successful, this combined hydrogen-based system could not only assist the EU in achieving its climate goals but also encourage other projects globally.

In addition, the project is an excellent example of global collaboration, with European technical know-how, Australian raw materials capability, and Japanese industrial capability combined. It is also symbolic of how older industries can be transformed through technological innovation and strategic investment, underpinned by supportive public policy and cross-industry collaboration.

As the plant prepares for its 2027 launch, the world steel industry will be holding its breath. With the potential for on-going, hydrogen-fueled production and the possibility of net-zero emissions, the HYFOR-Smelter technology presents a vision for ironmaking that is ambitious to say the least—one that could soon become the template for a greener, cleaner industrial future.