In a statement, H2 Green Steel said Midrex, working in consortium with SMS group’s Paul Wurth unit, will build a sponge iron plant running entirely on green hydrogen. The plant will be capable of annually producing 2.1 million metric tons of both hot direct reduced iron (DRI) and hot briquetted iron (HBI). 

“This DRI plant will truly be first of its kind and a landmark for large-scale green steel production,” said Maria Persson Gulda, H2 Green Steel’s chief technology officer. 

The plant also will include what's being billed as the world's largest electric hydrogen heater. The heater is  designed and supplied in partnership with the Tutco SureHeat business of Flex-Tek Group, a division of the U.K.-based engineering company Smiths Group plc.

“This unique project is a ‘lighthouse’ to our industry and sets the standard for green steel. There is simply nothing like it," said Midrex president and chief executive Stephen C. Montague. “This is where Midrex wants to be – at the leading edge of technology.”

Thomas Hansmann, head of metallurgy at SMS group and Paul Wurth's chief technical officer, said the project is a true milestone along the path to climate-friendly steel production.  

"In 2025, the world’s first large-scale green steel plant will be a reality,” he said. 

Meanwhile, Midrex parent Kobe Steel is investing in H2 Green Steel as part of its Series B financing round. At the same time, Kobe Steel has begun discussing a potential green HBI supply agreement with H2 Green Steel. H2 Green Steel might have some excess HBI as it transitions from start-up to full capacity. 

“We are really excited to cooperate with H2 Green Steel as the strategic partners from both aspects of plant supply and equity investment, in order to jointly tackle the challenge toward the global carbon neutrality. We feel confident that H2 Green Steel project will set a good precedent in the world iron and steel industry moving forward to decarbonization,” said Kobe Steel executive vice president Kazuto Morisaki.