The European Carbon Borden Adjustment Mechanism (CBAM) and the proposed safeguard changes are giving additional momentum to GravitHy’s plans to build a low-carbon hot-briquetted iron plant in Fos-sur-Mer, southern France, Kallanish learns from the company.
GravitHy chief executive José Noldin was present at the public consultation meeting held in Fos-sur-Mer earlier this month. He confirms to Kallanish that several million euros have already been invested, as the project enters a concrete implementation phase. The project “is going forward gradually and steadily… CBAM and safeguards are creating some momentum,” he comments.
Towards the end of this year the firm will file permit applications and expects to be granted all major authorisations, according to a public consultation report. The first quarter of 2027 will be dedicated to the final investment decision. The construction phase is scheduled to run from 2027 to 2029, with industrial testing starting from mid-2029. First production is targeted for 2030.
The hydrogen-based HBI plant will have a capacity of 2 million tonnes/year by 2030. During the meeting, questions were raised regarding the cost of hydrogen, the project’s profitability and the market’s ability to absorb a low-carbon product. GravitHy states that pricing details remain confidential but notes that the economic analysis has been sufficient to secure investor backing.
“Projections show that by 2030, the cost of a green product could align with that of a conventional product, notably thanks to the availability and competitive pricing of low-carbon electricity in the region,” the consultation document states.
Meanwhile, Jacques Yves Floch, the ceo of the Marcegaglia plant in Fos-sur-Mer, outlined the progress of the Mistral project, Marcegaglia’s future coil plant in the region. Antonio Marcegaglia confirms to Kallanish that the Mistral expansion project will increase the current plant’s output from 200,000t to 2.15m t/y of coil.
Logistics is a key factor for the site’s competitiveness. Marcegaglia confirms he intends to limit road transport and prioritise rail and inland waterway solutions for raw materials sourcing. Scrap supplies will be sourced predominantly from Europe, particularly from France and northern Europe. The plant currently produces bearings and engineering steels, including ingots, billets and blooms.
The GravitHy and Mistral projects are closely linked. Marcegaglia is an investor in GravitHy and is set to become an off-taker for the project’s output (see Kallanish passim).
