Cleveland-Cliffs Inc., a major U.S. mining and natural resources firm, has scrapped its planned $500 million hydrogen-based steel plant in Middletown, Ohio, citing insufficient availability of clean hydrogen and uncertainty around federal energy policy.
The canceled project would have featured two electric arc furnaces and a hydrogen-ready direct reduced iron (DRI) plant, aiming to significantly cut emissions from traditional steelmaking. However, delays in hydrogen production infrastructure and concerns over potential policy shifts under the Trump administration prompted the company to halt the initiative.
While the Biden administration’s Department of Energy had previously supported the project, Cleveland-Cliffs CEO Lourenco Goncalves said the company was unable to justify the full cost. The initiative would have required an additional $1.1 billion in investment beyond federal grants, bringing the total estimated outlay to $1.6 billion.
Another major hurdle, Goncalves noted, was a lack of market demand for green steel at premium prices, which made it financially risky to proceed.
Instead, the company will now extend the life of its existing coal-fired blast furnace, doubling down on traditional steelmaking methods.
Cleveland-Cliffs is currently in talks with the new administration to renegotiate its federal grant for alternative energy priorities. The decision to cancel the project marks a significant blow to U.S. efforts to decarbonize the steel industry, highlighting ongoing challenges related to infrastructure, technology, and market readiness for green steel.
VietnamSteel by Hoa Sen Group
