New Mix of Raw Materials
Unlike the previous LD process (Linz-Donawitz process), steel production in green-power-based EAFs eliminates the use of CO2-intensive coal and coke. Instead, a mix of scrap, liquid pig iron, and HBI is used in the electric arc furnace.
The long-term supply of HBI (Hot Briquetted Iron), scrap, pig iron, and green electricity is therefore a significant competitive advantage. At voestalpine, we are taking appropriate measures to meet the growing demand for raw materials. We source the required HBI primarily from the direct reduction plant in Texas, USA, which has been majority-owned by a global steel producer since 2022. We have entered into a long-term supply agreement with this partner in Texas.
We meet our demand for recycled materials from two sources: first, by reusing our own scrap generated during steel production and further processing, and second, through long-term scrap supply agreements with our partners.
Pig iron will continue to be produced via the traditional blast furnace route through 2030. We plan to meet our electricity needs through long-term power supply contracts. Currently, we have supply contracts with both national and regional power generators, as well as with local renewable energy producers utilizing solar and, above all, wind sources.
What is direct reduction?
The direct reduction process produces HBI, which can be used as a high-quality and environmentally friendly feedstock for steel production. In this process, iron ore is reduced to iron using natural gas rather than coal and coke, resulting in lower CO₂ emissions.
