The European Commission’s plan to enhance Europe’s steel and metal industrial capacity places significant emphasis on decarbonising the carbon-intensive steel sector. French company GravitHy, a low-carbon iron producer for the clean steel sector, is addressing this challenge by reducing the carbon emissions associated with the steel production footprint.
The cleantech startup has secured €60 million in funding to support its growth. New investors include the Japan Hydrogen Fund (managed by Advantage Partners), Marcegaglia, Ecolab (via Nalco Dutch Holding), Rio Tinto, and Siemens, along with reinvestment from existing shareholders Engie New Ventures and InnoEnergy. This diverse investor base, representing a global interest in decarbonising the steel industry, paves the way for enhanced Euro-Japan partnerships through the Japan Hydrogen Fund network.
This capital injection will enable GravitHy to finance its action plan toward a final investment decision in 2026. The funding will accelerate growth through securing key contracts, completing engineering work, obtaining permits, and attracting top talent. The company continues to engage with potential new investors to support its expansion.
How GravitHy aims to decouple iron and steelmaking
GravitHy was founded in 2022 by a consortium of world-class industrial partners, including EIT InnoEnergy, Engie New Ventures, FORVIA, GROUPE IDEC, Plug, and Primetals Technologies.
The company addresses the significant carbon emissions from the steel industry, representing a substantial portion of global energy demand and CO2 emissions. GravitHy aims to decarbonise steel production using renewable and low-carbon hydrogen to produce Direct Reduced Iron (DRI) or Hot-Briquetted Iron (HBI).
As a pioneer in the emerging low-carbon iron market, GravitHy is accelerating the steel industry’s decarbonisation. DRI/HBI will become a crucial globally traded commodity, creating new trade flows. GravitHy’s focus on producing low-carbon DRI/HBI as a versatile feedstock sets it apart from competitors like H2 Green Steel and HYBRIT, which typically focus on integrated processes.
GravitHy stands out in the green steel market, competing with H2 Green Steel, HYBRIT, and SSAB. While these competitors focus on integrated processes or specific steel production methods, GravitHy’s specialisation in producing low-carbon DRI/HBI as a versatile feedstock for the broader steel industry sets it apart.
With this new funding, GravitHy is well-positioned to offer a rapid solution for steelmakers eager to produce green steel while focusing on their core business without heavy investment in the complete H2-DRI value chain. The company’s project aligns with the European Commission’s Clean Industrial Deal and Steel & Metals Transition Plan, providing a strong legislative framework for decarbonisation efforts.
Accelerating transition of the steel industry towards a low-carbon future
GravitHy’s primary goal is accelerating the steel industry’s transition to a low-carbon future. It plans to build and operate facilities that use hydrogen to reduce iron ore, significantly lowering CO2 emissions compared to traditional methods. Using green and low-carbon hydrogen in production reduces CO2 emissions by up to 90% compared to conventional methods.
The future plant will be commissioned in late 2028, creating up to 500 direct jobs with a €2.2 billion investment. Located on a 75-hectare site in Fos-sur-Mer (France), it will produce 2 million tons of DRI/HBI annually, equivalent to one Eiffel Tower daily. Using on-site green and low-carbon hydrogen production, it will feature a 750 MW electrolyser, which is the largest in France and among the largest worldwide.
GravitHy Chief Executive Officer José Noldin said: “We are thrilled by the confidence our diverse investors have shown in GravitHy. 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. Their support accelerates our flagship project in Fos-sur-Mer, creating jobs, driving technological progress, and setting a blueprint for a resilient, decarbonised, and sovereign European steel industry.”
GravitHy’s direct reduction plant to slash CO2 emissions by up to 90%
Conventional coke-based ironmaking, the step directly upstream of steelmaking, accounts for more than 80% of CO2 emissions throughout the process. Low-carbon steel production is, therefore, essential for the net-zero energy transition. Iron and steel production contribute about 8% of global carbon emissions and require new technologies, redesigned processes, and new infrastructure to decarbonize.
The impressive shareholder base, including key players and global leaders across the value chain, reinforces the project’s credibility and demonstrates confidence in GravitHy’s vision and potential.
GravitHy’s selection for France 2030 highlights the government’s commitment to supporting green steel initiatives. Europe’s push for industrial sovereignty and decarbonisation, strong legislative frameworks, and growing demand for low-carbon metallics support the company’s market entry.
Diego Pavia, CEO of InnoEnergy, said: “We are delighted that GravitHy has reached this important milestone in their growth plan. Bringing strategic investors across the green steel value chain will help secure demand for GravitHy’s low-carbon iron. This successful funding round proves that there is momentum for green industrial projects set to be a key driver of economic growth and industrial decarbonisation in Europe.”
Keiichi Suzuki, Partner and Head of Renewables and Sustainability at Japan Hydrogen Fund, said: “We are very proud to be part of GravitHy’s investors, supporting one of the most important European green steel projects. The steel industry is the biggest industrial emitter, and AP is committed to reducing emissions in the ‘hard to abate’ sectors. AP is also fully committed to bringing Japanese value to large European projects through Japan Hydrogen Fund’s network. Euro-Japan collaboration will be strongly enhanced through this investment.
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