Iron-based hydrogen by direct reduction project developer GravitHy has submitted construction permits and environmental application permits for a planned low-carbon iron project in Fos-sur-Mer, France, marking a key regulatory step for one of the European countries with dynamically growing hydrogen-based steel decarbonization projects.
The French industrial company plans to produce 2 million tons of hot-rolled pig iron annually in Fos-sur-Mer, a strategically important location due to the region's port and logistics infrastructure, access to process water, affordable land, and proximity to participants in the steel production and distribution chain such as Marcegaglia Fos-sur-Mer and ArcelorMittal.
This material is intended for use in electric arc furnaces, which allows European steelmakers to obtain low-carbon raw materials as the industry seeks to reduce dependence on coal-fired blast furnaces.
GravitHy's technological process is based on direct reduction of iron ore using low-carbon hydrogen produced on-site as a result of water electrolysis. The company says the project can help steel mills reduce emissions by about 90% compared to traditional processes, while the plant will be able to avoid CO2 emissions of up to 4 million tons per year when operating at full capacity.
The company said that applying for a permit is a crucial step towards making a final investment decision, highlighting the commercial and political potential of hydrogen-based pig iron production in Europe.
On July 22, the Platts agency, part of S&P Global Energy, estimated the production of hot-rolled carbon coils in Northwestern Europe at the Ruhr plant at 775 euros per ton, which is stable from day to day.
Author: Annalisa Villa
Spglobal.com
