Hy4Smelt: Construction on Austria’s largest climate action research project starts at the voestalpine site in Linz

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. 

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, CTO and 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.  

With total costs of around EUR 170 million, Hy4Smelt is the largest climate action research project in Austria in terms of investment. The European flagship project Hy4Smelt is partly funded by Austrian (aws/Twin Transition and KPC/Transformation der Industrie) and European (RFCS/Clean Steel Partnership and Clean Hydrogen Partnership/Hydrogen Valleys) funding institutions. The scientific partner is K1-MET, one of the leading international metallurgical competence centers for the development of metallurgical and environmental technology processes.