Hydrogen Cooperation Cooperation Plans Hydrogen-Based Facility for Pig Iron Production

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Primetals Technologies, together with Mitsubishi Corporation and Rio Tinto, is implementing a hydrogen-based facility for pig iron production. The industrial-scale prototype will be built at Voestalpine in Linz (Austria).

On April 1, 2025, Primetals Technologies, Mitsubishi Corporation, Rio Tinto—a leading mining and raw materials company—and the steel and technology group Voestalpine signed a cooperation agreement. The aim is to further develop fluidized bed and smelting technologies for iron ore. The project partners will establish a prototype of the facility on an industrial scale at the Voestalpine site in Linz. Thanks to a new process, this facility will enable iron production without CO₂ emissions. Commissioning is planned for mid-2027.

Hydrogen-Based Direct Reduction and Smelting Furnace

The new iron production process allows for the production of three tons of hot metal per hour and is based on two developments from Primetals Technologies: "Hyfor" and Smelter. Hyfor (Hydrogen-based fine-ore reduction) is the world's first technology for the direct reduction of fine ores that does not require iron ore preparation. Since 2021, Primetals Technologies has been operating a pilot plant on the premises of Voestalpine in Donawitz (Austria), where numerous test campaigns have already been successfully conducted. The Smelter is a furnace used for melting and final reduction of directly reduced iron. At Voestalpine, it is powered by renewable energy, enabling the production of hot metal for subsequent steel production without CO₂ emissions.

"This project marks a significant advancement towards the iron production of the future. For the first time, a hydrogen-based direct reduction plant is directly coupled with the smelting process," says Alexander Fleischanderl, Chief Technology Officer and Head of Green Steel at Primetals Technologies. "The combination of Hyfor and Smelter could revolutionize the iron industry like the LD converter did for steel production. We are very proud to be able to shape the future of iron production without CO₂ emissions significantly, with the support of strong partners like Voestalpine, Rio Tinto, and Mitsubishi Corporation."

Drive Decarbonization of the Steel Industry

"Mining and trading in iron-containing raw materials have been among our core businesses for many decades," says Kenichiro Tauchi, COO, Ferrous Raw Materials Division of Mitsubishi Corporation. "Now we want to develop a new offering of low-emission sponge iron and hot metal to support the decarbonization of the steel industry. Hyfor and Smelter are promising technologies to advance this process. Mitsubishi Corporation is excited as a strategic partner of Primetals Technologies to collaborate with leading companies in the iron and steel industry in the development of these groundbreaking technologies."

Herbert Eibensteiner, CEO of Voestalpine AG, explains: "With Greentec Steel, Voestalpine is pursuing a clear phased plan for steel production with net-zero CO₂ emissions. In the first step, we will commission an electric arc furnace powered by green electricity at each of our sites in Linz and Donawitz in 2027. By 2029, we will reduce our CO₂ emissions by up to 30 percent compared to 2019. This corresponds to almost 5 percent of Austria's total annual CO₂ emissions and makes Greentec Steel the largest climate protection program in the country. In the long term, we are pursuing the goal of climate-neutral steel production using green hydrogen. Together with Primetals Technologies and Rio Tinto, we are embarking on a completely new and promising path in hydrogen-based hot metal production research."

Rio Tinto Supplies 70 Percent of the Iron Ore for the new Facility

Rio Tinto, one of the world's largest iron ore producers, brings its extensive expertise in iron ore quality and processing to technically support the project. Additionally, Rio Tinto will supply 70 percent of the iron ore for the new facility from its global ore mines. The company will also assist Primetals Technologies in the commercialization of the technology.

Thomas Apffel, General Manager, Steel Decarbonization at Rio Tinto, explains: "We are pleased to join a consortium that covers the entire process chain. With our expertise in iron production and our iron ores from operations in Pilbara, Iron Ore Company of Canada, and Simandou, we aim to drive the development and dissemination of fluidized bed technology. The fine-ore-based solution for iron production used is a convincing alternative to blast furnace technology. It eliminates the need for ore preparation, providing significant advantages to both steel producers and mining companies. Rio Tinto welcomes the inclusion of additional participants in the consortium and looks forward to supporting the widespread adoption of this innovative technology."

Funding by the EU and the Austrian Government

The Austrian Federal Government is financing the investment and operation of this prototype plant within the framework of the "Transformation of Industry" program managed by Kommunalkredit Public Consulting (KPC) and the "Twin Transition" initiative managed by Austria Wirtschaftsservice (aws). Additionally, the European Union supports the project through the European Research Fund for Coal and Steel under the Clean Steel Partnership (CSP). Further funding is provided by the EU Clean Hydrogen Partnership within the Hydrogen Valleys for applications where hydrogen serves more than one end sector or application in the fields of mobility, industry, and energy.

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