More Than 2 Years in the Making, voestalpine's U.S. HBI Plant Opens
10/26/2016 - voestalpine officially opened its US$740 million direct reduction plant in Corpus Christi, Texas, on Wednesday, marking the end of work on a project that is corporate Austria’s largest-ever U.S. investment and one that will help the company reduce its carbon footprint.
"Today's opening of the direct reduction plant in Corpus Christi is an important step for -- and into -- the future of our company. The new plant will not only secure the Austrian voestalpine sites by supplying premium pre-materials for steel production, it will also contribute significantly to further strengthening our position in the NAFTA region,” voestalpine board chairman Wolfgang Eder said in a statement.
“Furthermore, over the long term, it offers us new technological options for decarbonizing steel production," he added.
The natural gas-fed plant is capable of annually producing 2 million tons of sponge iron, 40 percent of which will be shipped to voestalpine’s overseas mills. The remainder, about 1.2 million tons, will be sold to outside buyers. voestalpine has agreements for all of that production, ensuring that the plant will run at full capacity for the next four years, it said.
voestalpine also said the plant is expected to yield a 5% reduction in the company’s overall carbon dioxide emissions because the plant uses relatively cleaner natural gas as a reducing agent.
"We are systematically working to gradually decarbonize steel production, first by the partial substitution of coal and coke with gas-based bridging technologies, and then by the long-term, gradual use of CO2-neutral hydrogen. With adequate availability, in the future 'green' hydrogen could also replace natural gas as a reducing gas in Texas, making possible the emissions-free production of (hot briquetted iron," Eder said.
To gain the know-how, the company is preparing to build a US$23 million pilot facility at its Linz works in Austria. The facility will generate hydrogen through electrolysis.
However, end-to-end hydrogen-based steel production is still a thing of the future, the company said.
“From today's viewpoint, it could become a reality in around 20 years at the earliest and is dependent on energy being available at reasonable costs,” the company said.
“Furthermore, over the long term, it offers us new technological options for decarbonizing steel production," he added.
The natural gas-fed plant is capable of annually producing 2 million tons of sponge iron, 40 percent of which will be shipped to voestalpine’s overseas mills. The remainder, about 1.2 million tons, will be sold to outside buyers. voestalpine has agreements for all of that production, ensuring that the plant will run at full capacity for the next four years, it said.
voestalpine also said the plant is expected to yield a 5% reduction in the company’s overall carbon dioxide emissions because the plant uses relatively cleaner natural gas as a reducing agent.
"We are systematically working to gradually decarbonize steel production, first by the partial substitution of coal and coke with gas-based bridging technologies, and then by the long-term, gradual use of CO2-neutral hydrogen. With adequate availability, in the future 'green' hydrogen could also replace natural gas as a reducing gas in Texas, making possible the emissions-free production of (hot briquetted iron," Eder said.
To gain the know-how, the company is preparing to build a US$23 million pilot facility at its Linz works in Austria. The facility will generate hydrogen through electrolysis.
However, end-to-end hydrogen-based steel production is still a thing of the future, the company said.
“From today's viewpoint, it could become a reality in around 20 years at the earliest and is dependent on energy being available at reasonable costs,” the company said.
