Rio Tinto to Supply 70% of Iron for Low-Carbon Steel Plant in Groundbreaking EU Project

  • Hydrogen breakthrough: First-ever integration of hydrogen-based direct reduction of iron ore fines with a Smelter for near-zero CO2 steel production.
  • Strategic partnerships: Backed by Rio Tinto, Mitsubishi Corporation, voestalpine, and Primetals Technologies—encompassing the full steel value chain.
  • EU-backed project: Supported by Austrian and EU government funds, with operations launching in 2027 in Linz, Austria.

Primetals Technologies, Mitsubishi Corporation, Rio Tinto, and Voestalpine are building an industrial-scale prototype hydrogen-based ironmaking plant in Linz, Austria. Launching mid-2027, the facility will use HYFOR (Hydrogen-based Fine-Ore Reduction) and a Smelter to produce hot metal, hot briquetted iron, and pig iron without coal.

This project represents a significant advancement in future-proof ironmaking – for the first time, we will implement a continuous production process with hydrogen-based direct reduction,” said Alexander Fleischanderl, CTO and Head of Green Steel at Primetals Technologies.

Alexander Fleischanderl, CTO and Head of Green Steel at Primetals Technologies

The HYFOR-Smelter system could be a game-changer for steel decarbonization:

  • HYFOR is the only direct reduction tech for iron ore fines requiring no pelletisation—cutting energy and costs.
  • The Smelter uses renewable electricity for final reduction—achieving potential net-zero CO2 output.
  • The process may disrupt legacy systems much like the LD converter revolutionized steel in the 20th century.

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The combination of HYFOR and Smelter is a highly innovative development with the potential to transform the industry, similar to the impact the LD converter (BOF) had on steel production.” — Fleischanderl

Who’s involved & their roles:

  • Rio Tinto will supply 70% of the iron ore and contribute technical expertise from its global operations, including Pilbara and Simandou.

This fines-based ironmaking solution presents a compelling alternative to shaft furnace technology by eliminating the need for pelletisation,” said Thomas Apffel, GM of Steel Decarbonisation at Rio Tinto.

Thomas Apffel, GM of Steel Decarbonisation at Rio Tinto
  • Mitsubishi Corporation is onboard as a strategic partner driving decarbonized raw materials supply.

“HYFOR and Smelter are new promising technologies to accelerate the decarbonisation of the steel industry and Mitsubishi Corporation… is excited to participate,” said Kenichiro Tauchi, COO, Ferrous Raw Materials Division.

  • voestalpine, host of the plant, is executing its “greentec steel” plan to reduce emissions by 30% by 2029—equal to 5% of Austria’s annual CO2 output.

Together with Primetals Technologies and Rio Tinto, we are taking an entirely new and promising approach to research into hydrogen-based pig iron production,” said Herbert Eibensteiner, CEO of voestalpine AG.

Herbert Eibensteiner, CEO of voestalpine AG

The plant is backed by:

  • Austria’s “Transformation of Industry” program (Kommunalkredit Public Consulting)
  • EU’s Clean Steel and Hydrogen Partnerships, supporting hydrogen-based solutions across industrial clusters

This marks a pivotal moment for steel: a fully integrated, hydrogen-powered ironmaking system on an industrial scale—ready to deliver net-zero potential, reduce reliance on coal, and reshape supply chains.

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