Hydrogen-based, direct-reduced iron project developer GravitHy has closed a Eur60 million funding round for its French “green” steel plant at Fos-Sur-Mer, the company said March 26, adding that it is targeting a final investment decision on the project in 2026.
The 2 million mt/year hot briquetted iron plant in Fos-Sur-Mer in the south of the country is set to start commercial production in 2029, after a commissioning phase and progressive pre-commercial ramp-up. The project has an overall estimated price tag of Eur2.2 billion.
GravitHy is also building an electrolyzer at the site, with a capacity of approximately 750 MW, to produce low-carbon hydrogen for the plant.
The latest funding round — which brought in a series of new investors, as well as additional investment from existing shareholders Engie New Ventures and InnoEnergy — will help the company to secure key contracts, as well as completing engineering work and obtaining permits, the company said.
“We are thrilled by the confidence our diverse investors have shown in GravitHy,” Chief Executive Jose Noldin said. “Collaboration is key to disrupting the steel value chain, and we are proud to welcome these incredible partners who share our vision, values, and development goals.”
The steel industry contributes around 8% of global carbon emissions and requires new technology, redesigned processes, and new infrastructure to decarbonize, industry sources say.
Platts assessed Northwest European hot-rolled coil at Eur700/mt ex-works Ruhr on March 25, down Eur5/mt on the day.
