Japan’s Mitsubishi Corporation has partnered with Primetals Technologies to launch a demonstration project at the Voestalpine steelworks in Linz, Austria, focusing on the development of a hydrogen-based ironmaking process. This initiative involves integrating the HYFOR technology and an electric smelting furnace to create a new method for iron production with reduced CO2 emissions. The project, aiming to commence operations in mid-2027, will leverage renewable energy sources for sustainable operations. Global mining company Rio Tinto will supply the majority of the iron ore for the plant. The innovative HYFOR process eliminates the need for agglomeration steps in iron ore reduction and allows for the utilization of various types of iron ores, enhancing flexibility in feedstock selection. By utilizing hydrogen derived from renewable sources, the smelter utilized in the process aims to lower CO2 emissions compared to conventional ironmaking methods. The demonstration plant has received financial support from the Austrian federal government and the EU to facilitate its establishment and operation. While the new ironmaking process holds promise for reducing environmental impact in the steel industry, challenges such as high costs, technical complexities, and the necessity for a stable supply of renewable energy remain. Additionally, sourcing raw materials and meeting infrastructure demands present further obstacles to the widespread adoption of the technology. Despite these challenges, the project is seen as a crucial step towards decarbonizing steel production on a larger scale. The implementation of hydrogen-based technologies like HYFOR and the electric smelting furnace in ironmaking processes is anticipated to drive the demand for direct reduced iron (DRI) with minimal CO2 emissions. This shift towards sustainable practices could revolutionize the steel industry, paving the way for more environmentally friendly production methods in the future.