CRU
September 26, 2025
CRU: Construction of pilot plant for green steel process starts
Written by CRU Group
The analysis below was first published by CRU. To learn about CRU’s global commodities research and analysis services, visit www.crugroup.com.
Voestalpine and partners have begun building an industrial-scale Hy4Smelt demonstration plant in Linz, Austria, which they hope will become key in the decarbonization of steel.
The technology melts direct reduced iron (DRI) or hot briquetted iron (HBI), produced via the hydrogen-based fine-ore reduction (Hyfor) process, in an electric smelter.
The resulting high-quality pig iron can be used to manufacture sophisticated steel grades, similar to the traditional blast furnace process, and the separated slag can be used as a feedstock in other industries, notably cement production, said Voestalpine.
Its partners in the Hy4Smelt project are iron ore miner Rio Tinto, technology provider Primetals Technologies, and the Mitsubishi trading house as a co-investor.
Voestalpine is also installing electric arc furnaces (EAFs) to replace the BFs at its Linz and Donawitz steel works as part of its goal to be net zero by 2050.
