Construction Launches Hydrogen-Based Ironmaking Plant in Austria

Construction has officially begun on a hydrogen-based ironmaking plant in Linz, Austria, with the groundbreaking ceremony held on September 25, 2025. This significant development aims to produce hot metal with the potential for net-zero carbon dioxide emissions. The project is a collaboration between Primetals Technologies, voestalpine AG, and Rio Tinto, marking a pivotal step towards sustainable steel production.

The new facility will utilize the Hydrogen-based Fine-Ore Reduction (HYFOR®) technology, which allows for the production of hot briquetted iron, hot metal, and pig iron. The plant is expected to operate at a capacity of three tons per hour, targeting completion by the end of 2027. This innovation could provide an alternative to traditional blast furnaces, which have long been the standard in the ironmaking industry.

Herbert Eibensteiner, CEO of voestalpine AG, expressed optimism about the project, stating, “To achieve our long-term goal of net-zero CO2 emissions in steel production by 2050, we are researching new processes in collaboration with partners from industry and science.” He emphasized the importance of this initiative in confirming the company’s leadership in green steel production.

Innovative Technology and Environmental Impact

The HYFOR technology represents a groundbreaking approach by eliminating the need for agglomeration of iron ore fines. This process operates at lower reduction gas temperatures and facilitates the recycling of captured dust particles, enhancing the metallization of direct-reduced iron (DRI) and hot briquetted iron (HBI). Since 2021, a pilot plant operated by Primetals Technologies has successfully executed over 50 campaigns, demonstrating the viability of this innovative method.

The smelting process will also utilize renewable energy sources to melt DRI, producing hot metal comparable to that from conventional blast furnaces without the associated carbon emissions. The integration of certified green hydrogen from the existing H2Future electrolysis facility at voestalpine’s site further enhances the project’s sustainability credentials.

Dr. Alexander Fleischanderl, Chief Technology Officer at Primetals Technologies, noted, “We are about to implement technology solutions that have the potential to revolutionize the entire industry.” He underscored the urgent need for the steel industry to transition from coal-fired blast furnaces, which significantly contribute to environmental degradation.

Rio Tinto will supply approximately 70 percent of the iron ore required for the demonstration plant and will provide technical support throughout the project. Rafael Azevedo, General Manager of Iron Ore Sales and Marketing Atlantic at Rio Tinto, highlighted the collaboration’s significance, stating, “By contributing our iron ores and technical expertise, we’re helping to explore new pathways for low-emissions ironmaking.”

Strategic Partnerships and Funding Support

In addition to the collaboration with Rio Tinto, Primetals Technologies has formed a strategic partnership with Mitsubishi Corporation, which will enhance the project’s capabilities through its extensive experience in materials supply and market needs. This partnership is expected to strengthen the development and future commercialization of HYFOR and smelter technologies.

Funding for the construction and operation of the prototype plant will come from various sources, including the Austrian federal government and the European Union. The Austrian government supports the initiative through its “Transformation of Industry” program, while the EU backs the project via the European Union Research Fund for Coal and Steel and the Clean Hydrogen Partnership.

The global steel market is poised for significant change as this project progresses. According to voestalpine, the company generated revenue of €15.7 billion in the business year 2024/25, reinforcing its commitment to sustainable practices within the industry. As the plant moves forward, it embodies a crucial step towards achieving greener steel production, aligning with international climate goals and transforming the future of ironmaking.