Project Name: Hydrogen-Fueled Zero Emissions Steel Making

Location: Perry County, Mississippi and Montpelier, Iowa

Federal Cost Share: Up to $500 million

Selectee: SSAB

Project Summary

The Hydrogen-Fueled Zero Emissions Steel Making project, led by SSAB, would bring the ironmaking technology of a global leader in green hydrogen-based steel production to the United States to build the first commercial-scale facility in the world using the HYBRIT®, fossil-free Direct Reduced Iron (DRI) technology with 100% hydrogen in Perry County, Mississippi. The project also plans to expand SSAB’s Montpelier, Iowa steelmaking facility to utilize the resulting hydrogen-reduced DRI. SSAB has signed a letter of intent for Hy Stor Energy to supply green hydrogen and renewable electricity to the DRI facility. The low-carbon steel covers a wide range of grades, including those suitable for offshore wind turbines. By demonstrating the use of clean hydrogen to produce DRI, SSAB estimates that this project would reduce emissions from the DRI manufacturing process by 81%, providing a pathway for deep decarbonization of U.S. iron and steel production.  

This project aims to generate an estimated 6,000 construction jobs and 540 permanent jobs. SSAB plans to engage the Perry County Small Business Development Center to solicit and support vendors, contractors, and sub-contractors for the project and subsequent facility operations. Additionally, SSAB plans to partner with CERM Legacy Foundation to provide STEM-focused summer camp scholarships for qualifying high school students in underrepresented communities, assist curriculum development, and interact with students including offering field trips to the Perry County facility. 

Project Name: Hydrogen-Ready Direct Reduced Iron Plant and Electric Melting Furnace Installation

Location: Middletown, Ohio

Federal Cost Share: Up to $500 million

Selectee: Cleveland-Cliffs Steel Corporation

Project Summary

The Hydrogen-Ready Direct Reduced Iron Plant and Electric Melting Furnace Installation project for iron and steel, led by Cleveland-Cliffs Steel Corporation (Cleveland-Cliffs), includes plans to install a hydrogen-ready flex-fuel Direct Reduced Iron (DRI) plant and two electric melting furnaces at Cleveland-Cliffs' Middletown Works mill in Ohio. The project would lead to an estimated 1 million tons of greenhouse gas (GHG) emissions reductions per year. In addition, this project aims to demonstrate key hydrogen-based ironmaking technology while simultaneously leading to the replacement of one of Cleveland-Cliffs’ seven operating blast furnaces. This technology combination stands to be a viable option to reduce GHG emissions at basic oxygen furnace-based steelmaking facilities across the world. This project would enable Cleveland-Cliffs, the largest supplier of steel to the U.S. automotive industry, to further decarbonize the highest quality grades of rolled steel products for its customers, helping to decarbonize the automotive industry’s supply chain.

The project anticipates creating 170 permanent jobs and 1,200 temporary union construction jobs, while preserving the site’s existing 2,500 jobs—including 2,000 International Association of Machinists and Aerospace Workers (IAM). The project would result in the continued utilization of iron ore pellets from Cleveland-Cliffs' mines in Michigan and Minnesota, which are represented by the United Steelworkers (USW). This investment aims to substantially reduce air and water emissions and address needs in the Middletown community through the execution of a robust Community Benefits Plan. 

Project Name: Induction Melting Upgrade

Location: Birmingham, Alabama

Federal Cost Share: Up to $75 million

Selectee: AMERICAN Cast Iron Pipe Company

Project Summary

The Induction Melting Upgrade (“Right Way” Next Generation Melt Project), led by AMERICAN Cast Iron Pipe Company, seeks to electrify its process by replacing a cupola furnace with four induction furnaces, eliminating coke (derived from coal) combustion, and reducing melt process carbon dioxide emissions by an estimated 95% at its Birmingham, Alabama facility. These upgrades can be replicated throughout the ductile iron pipe industry to provide lower-carbon footprint piping for municipal water systems to replace America’s aging water infrastructure, and support new industries, including chip and battery manufacturing plants.  

This project expects to retain high-paying jobs by improving AMERICAN Cast Iron Pipe Company’s competitiveness. Additionally, the AMERICAN Cast Iron Pipe Company plans to establish a Community and Labor Engagement Taskforce for this project to keep stakeholders informed, obtain feedback, and track the status of their Community Benefits Plan. Additionally, the company plans to continue to support the Wallace State Community College’s Federation for Advanced Manufacturing Education (FAME) program to facilitate community upskilling while continuing to provide up to $150,000 in scholarships to engineering programs at Auburn University, the University of Alabama (Tuscaloosa), and the University of Alabama at Birmingham.  

Project Name: Iron Electric Induction Conversion  

Location: Bessemer, Alabama

Federal Cost Share: Up to $75.5 million  

Selectee: United States Pipe and Foundry Company  

Project Summary

The Iron Electric Induction Conversion project, led by United States Pipe and Foundry Company (U.S. Pipe), aims to replace a coke-fired furnace with electric induction melting furnaces, which would eliminate the need for natural gas and coke (derived from coal) in the iron melting process and result in an estimated 73% reduction in carbon intensity at the Alabama Works ductile iron pipe production facility in Bessemer, Alabama. This project is expected to reduce the cost of operations, improve manufacturing capacity, and enhance overall melting process and reliability—demonstrating the viability of electrifying a core process for iron and steel manufacturing.  

By replacing the burning of coke with electric induction, this project would substantially improve air quality including reductions in particulate matter, nitrogen oxides, and sulfur oxides for nearby communities. The project anticipates generating more than 220 construction jobs, upskilling 36 employees to higher-skilled and higher-paying roles, and providing leadership development opportunities for many others.  Additionally, U.S. Pipe plans to sponsor two to three STEM scholarships and an internship program—that includes shadowing U.S. Pipe engineers—for low-income students in the Bessemer area to expose students to clean energy manufacturing. U.S. Pipe has collective bargaining agreements with United Steelworkers (USW), International Association of Machinists and Aerospace Workers (IAM), and the International Brotherhood of Electrical Workers (IBEW) at Bessemer. 

Project Name: Low-Emissions, Cold-Agglomerated Iron Ore Briquette Production

Location:  U.S. Gulf Coast

Federal Cost Share: Up to $282.9 million

Selectee: Vale USA

Project Summary

In the Low-Emissions, Cold-Agglomerated Iron Ore Briquette Production project, Vale plans to invest in the United States to create a first-of-its-kind production facility for a viable low-emissions alternative to traditional iron ore pellets. This transformative technology achieves deep emissions reductions by decarbonizing iron ore processing and reducing the need for industrial heat, resulting in a flexible product that can be used at both direct-reduced and blast furnace ironmaking routes. This would reduce CO2 emissions by an estimated 60% and also have health benefits—reducing certain criteria air pollutants like sulfur oxides by roughly 99%.

This project anticipates creating more than 1,000 construction jobs and nearly 200 permanent jobs of varying levels of skills and technical expertise. On a local level, Vale has established dialogue with trade unions and councils, local universities and technical skills institutes, workforce development groups, and community agencies focused on climate resiliency. These engagements will guide a strategic plan for education, training, up-skilling, and overall workforce advancement, to propel inclusive, sustainable economic growth within the surrounding communities.  

Project Name: Steel Slab Electrified Induction Reheat Furnace Upgrade

Location: Lyndora, Pennsylvania

Federal Cost Share: Up to $75 million

Selectee: Cleveland-Cliffs Steel Corporation

Project Summary

The Steel Slab Electrified Induction Reheat Furnace Upgrade project, led by Cleveland-Cliffs Steel Corporation (Cleveland-Cliffs), plans to electrify the only production facility for high-silicon grain oriented electrical steel (GOES) in the U.S. GOES is a critical input for transformers and the electricity sector. Induction heating is a highly energy efficient heating method that minimizes energy losses and enables precise control over temperatures. This project anchors a crucial component of the U.S.'s energy supply chain and is widely replicable among the many iron and steel facilities that use reheat furnaces across the U.S.  

This project is anticipated to sustain the 1,000+ existing jobs at Butler Works and will support 160 jobs at Zanesville Works in Ohio where electrical steel is finished. Workers at both Butler Works and Zanesville Works are represented by the United Auto Workers (UAW). Cleveland-Cliffs anticipates the furnace installations to result in a 100% reduction in direct greenhouse gas emissions associated with the high-temperature reheat furnaces, improving air quality for the nearby communities.