GravitHy secures €60mn to drive steel industry decarbonisation

GravitHy has announced a €60mn funding round. The company is planning to build a new low-carbon iron production plant in Fos-sur-Mer (near Marseille), France, that will produce 2mn t/y of direct reduced iron and hot briquetted iron. Expected to enter commercial production in 2029, the site will house a 750 MW electrolyser, the largest in France and among the biggest globally, to produce the low-carbon hydrogen required for iron ore reduction.  

Conventional coke-based ironmaking, the step directly upstream of steelmaking, is responsible for more than 80% of CO₂ emissions produced in the entire process. As a sector, the production of iron and steel contributes around 8% of global carbon emissions, according to the World Steel Association.  

GravitHy claims its new plant will cut CO₂ emissions by up to 90%.

The company signed a letter of intent in 2024 with EDF for a Nuclear Production Allocation Contract (CAPN) to supply energy to the new facility. It has also confirmed access to the planned extension of France’s electricity transmission infrastructure via RTE’s decennial network development plan.

This latest investment brings new global investors on board to the project, including Ecolab, Japan Hydrogen Fund (serviced by Advantage Partners), Marcegaglia, Rio Tinto and Siemens Financial Services. Existing shareholders Engie New Ventures and InnoEnergy have also contributed additional funding. The project represents a total investment of €2.2bn and is expected to create up to 500 direct jobs, reports GravitHy.

‘Collaboration is key to transforming the steel value chain. [This investment] accelerates our flagship project in Fos-sur-Mer, creating jobs, advancing technology, and setting the foundation for a resilient, low-carbon European steel industry,’ comments José Noldin, Chief Executive Officer at GravitHy.

SSAB and Putzmeister start partnership in fossil-free steel for concrete pumps and concrete mixers

In related European news, steelmaker SSAB has entered into an agreement with global construction equipment manufacturer Putzmeister to supply future fossil-free steel for use in products such as concrete pump trucks and concrete mixers.  

The companies plan to replace conventional steel with steel produced using HYBRIT technology. HYBRIT, developed by SSAB in partnership with mining company LKAB and utility Vattenfall, uses green hydrogen and fossil-free electricity instead of coking coal to make steel, thus largely eliminating the large CO₂ emissions associated with traditional steel production.  

‘By partnering with SSAB, we will be able to offer construction equipment with a significantly lower carbon footprint and set a new standard for efficient and sustainable construction,’ says Alexander Diez, Head of Sustainability at Putzmeister.

India’s steel sector competitiveness under threat as Europe tightens carbon rules

Meanwhile, the Indian steel sector – the world’s second largest (beaten only by China) – faces a critical challenge in 2025 as the EU tightens its environmental standards, according to Rystad Energy.  

‘With Europe being key customer for Indian steel, accounting for 25% of exports, India must urgently comply with stricter carbon regulations to avoid steep financial penalties that could undermine its global position in the steel market,’ says the market analyst.

Rystad Energy’s research suggests that by 2034, India and Russia could face some of the highest carbon costs in steel production, potentially incurring levies of up to $116/t in India and $94/t in Russia, even if carbon prices remain stable.

The EU’s Carbon Border Adjustment Mechanism (CBAM), which will take full effect by 2034 but begins next year, will assign a carbon cost to imports, including steel, based on embedded carbon emissions. According to the EU’s Joint Research Centre (JRC), India’s steel production is more carbon-intensive than most of its global competitors. As a result, this policy could impose a potential surcharge of up to $80/t by 2030 unless cleaner technologies are adopted in India. ‘These rising costs threaten to undermine the country’s competitiveness in the European market, making its steel less attractive compared to lower-emission alternatives. South Korea and Turkey are well-positioned to benefit from this shift and could potentially displace India from the top three producers,’ warns Rystad.

In response, the Indian government introduced a green steel classification system under the Production Linked Incentive (PLI) scheme in December 2024. Under this framework, steel producing less than 2.2 tonnes of CO₂ per tonne of finished steel qualifies as ‘green’, while steel with emissions below 1.6 tonnes per tonne earns a five-star rating. The initiative aims to incentivise Indian steelmakers to cut emissions and adopt cleaner technologies. Discussions are also under way to mandate green steel in public sector projects, potentially reshaping domestic demand.

The nation’s top five largest steel producers –Tata Steel, JSW Steel, Jindal Steel & Power (JSPL), Steel Authority of India (SAIL) and AM/NS India – collectively account for more than 50% of the nation’s steel output. They have made changes with some setting net zero carbon goals as early as 2045, reports Rystad. To curb emissions, these producers are also adopting a mix of renewable energy integration, process optimisation and circular economy initiatives.

Tata Steel, for instance, is commissioning a 0.75mn t/y electric arc furnace (EAF) plant in Ludhiana, Punjab, for low-carbon steel production. The company has also invested in a carbon capture plant in Jamshedpur, Jharkhand, and is securing 379 MW of captive renewable power for its operations. Meanwhile, JSW Steel, targeting net zero emissions by 2050, has raised $500mn through sustainability-linked bonds and is expanding production using low-carbon technologies. The company has also committed $1bn to decarbonisation and is incorporating biomass and hydrogen into its processes for steel making.

In addition, these domestic giants are also planning major capacity expansions, with total production projected to reach 189mn t/y by 2035. ‘While this growth is essential to meet both domestic and global demand, it must be carefully balanced with emission reductions if decarbonisation and scale are to advance in tandem,’ notes Rystad.

Currently, these companies are on track to cut emissions by only 43% in the next decade – well below the levels needed to comply with stringent EU standards and mitigate CBAM-related costs, adds the market analyst. ‘This slow progress leaves Indian steelmakers vulnerable to significant carbon taxes, potentially $116/t by 2034, and jeopardises their competitiveness in the EU due to rising carbon penalties and India’s high carbon intensity,’ Rystad concludes (based on the assumption of a $100/t carbon price).