Hy4Smelt & H2FUTURE: Two milestones for green steel production

Hy4Smelt is creating the world’s first demonstration plant at the Linz site that combines hydrogen-based direct reduction for ultrafine iron ores (HYFOR®) with an electric smelting process (smelter). The goal: high-quality pig iron – completely without coal, but with green hydrogen and electricity.

• Innovative combination: HYFOR® enables the direct reduction of fine ores with hydrogen for the first time. The sponge iron produced is melted electrically in the smelter – similar to a blast furnace, but fossil-free.
• Raw material efficiency: The use of fine ores opens up new sources of raw materials and increases flexibility in supply.
• Circular economy: The resulting slag is reused as a raw material, e.g., in the cement industry.
• Dimension: With over €170 million in funding, Hy4Smelt is Austria’s largest climate protection research project. Commissioning is planned for the end of 2027.

Hy4Smelt is a joint project with Primetals Technologies and Rio Tinto. While Primetals Technologies is responsible for the development and implementation of the innovative plant technologies, Rio Tinto contributes its expertise and iron ores for industrial testing. The project is supported by Austrian and European funding agencies.

A key element for the success of Hy4Smelt is a reliable supply of green hydrogen. This is exactly where the H2FUTURE research project comes in: Since 2019, voestalpine and VERBUND have been operating one of the world’s longest-running PEM electrolysis plants for the production of green hydrogen at their Linz site.
With the follow-up project H2FUTURE-Follow-up, the plant is now being specifically expanded to further optimize the production, purification, storage, and flexible use of hydrogen for industrial applications such as Hy4Smelt.

• Expansion of the plant: New compression and purification systems as well as five large storage tanks enable flexible storage and demand-oriented supply of hydrogen.
• Research focus: Improvement of hydrogen quality (purity, pressure) and integration into industrial processes.
• System services: The plant remains active in the balancing energy market and contributes to grid stabilization.
• Investment and schedule: €16.4 million, functional tests from 2026, project completion in 2029.

With Hy4Smelt and H2FUTURE, we are focusing specifically on innovative technologies to reach the next level of decarbonization in steel production. Both projects are central components of the comprehensive greentec steel transformation program.

• From 2027: Green electricity-powered electric arc furnaces in Linz and Donawitz will replace two blast furnaces.
• By 2029: Reduction of CO₂ emissions by up to 30% compared to 2019.
• Long term: Net-zero CO₂ emissions by 2050.

Hy4Smelt and H2FUTURE demonstrate how we are driving forward the decarbonization of the steel industry with technological excellence and strong partnerships – and making ourselves a pioneer in green steel.