French greenfield low-carbon hot-briquetted iron/ (HBI) producer GravitHy signed an agreement with equipment supplier Danieli Group for the supply of a direct reduction plant, GravitHy said on 5 August.
The new plant will be located in Fos-sur-Mer, southern France.
The direct reduction plant will have a capacity of 2 million tonnes of HBI per year and will operate using 100% hydrogen.
GravitHy added that the agreement marks an important milestone ahead of the Final Investment Decision, which is planned for 2027.
To learn more about decarbonization projects in France and globally, see McCloskey’s Global Green Steel Profile.
The company said the plant will emit 90% less CO2 compared to traditional blast furnace-based steel production.
Earlier this year, GravitHy, Italian flat steel and tube producer Marcegaglia, and low-carbon fuel company Elyse Energy signed a memorandum of understanding (MoU) to develop complementary industrial projects in Fos-sur-Mer.
Marcegaglia is in the process of modernizing the Fos-sur-Mer plant, which it acquired in 2024. After the upgrade, which is scheduled for completion by 2028, the plant will produce green steel using electric-arc furnace (EAF) technology. The facility’s capacity will reach 2.1 million tonnes per year of carbon and stainless steel hot-rolled coil (HRC), which will be shipped for further processing to Marcegaglia’s plant in Ravenna, Italy.
Marcegaglia has traditionally relied on HRC imports, but the introduction of the Carbon Border Adjustment Mechanism (CBAM) in 2026, followed by a significant reduction in steel import quotas from July, has substantially reduced import availability and increased costs.
According to market participants, European steelmakers will not be able to supply sufficient feedstock at prices that would allow Marcegaglia to continue operating as a re-roller without its own steelmaking capacity.
Author: Maria Tanatar
