- U.S. Department of Energy Launches Negotiations for Nation’s First Hydrogen-Ready Iron-Making Facilities
Today, the U.S. Department of Energy’s Office of Clean Energy Demonstrations announced the initiation of award negotiations for groundbreaking hydrogen-ready iron-making facilities, marking a significant stride towards sustainable manufacturing within the United States.
These facilities are anticipated to utilize green hydrogen, derived from new renewable energy resources, to produce iron devoid of fossil fuel reliance, employing modern direct-reduced iron (DRI) furnaces. This development comes as a response to advocacy for investment in environmentally friendly iron and steelmaking processes to safeguard community health and mitigate climate impact.
“The first proposed green steel plant in the United States, supported by the Department of Energy, is a crucial step toward revitalizing American manufacturing, fostering healthier communities and creating future-proof jobs,” stated Hilary Lewis, steel director at Industrious Labs.
Highlighting the transformative potential of this initiative, the Department of Energy has unveiled plans for a green hydrogen direct reduced iron plant in Perry County, Mississippi. Spearheaded by Swedish steel leader SSAB, this facility will be the inaugural commercial-scale operation utilizing HYBRIT technology, supported by green hydrogen supplied by Hy Stor Energy. The produced green iron is destined for SSAB’s existing electric arc furnace in Iowa, earmarked for green steel production.
Parallelly, a hydrogen DRI project by Cleveland-Cliffs aims to supplant the coal-dependent blast furnace at Middletown Works in Ohio, a move propelled by advocacy for a transition to green steel manufacturing. This shift not only promises a reduction in industrial pollution but also addresses longstanding environmental injustices, as noted by Bishop Marcia Dinkins, executive director of the Black Appalachian Coalition. “For too long, Black people, people of colour and low-income communities that live near coal-based steel mills like Middletown Works have borne the brunt of industrial pollution and its health consequences,” Dinkins commented, underscoring the health and equity benefits of fossil-free steel plants.
The transition to hydrogen DRI technology is expected to retain and potentially expand the union workforce in the affected regions. The Ohio River Valley Institute’s research indicates that green hydrogen DRI iron making could surpass fossil fuel technology in job creation, with today’s projects projected to maintain 2,500 existing union jobs while generating 7,200 construction and 710 permanent positions in Ohio and Mississippi.
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