Efforts to reduce carbon emissions in the steel industry have gained momentum with GravitHy securing €60 million in funding. The Marseille-based company aims to reshape iron production by promoting low-carbon alternatives, a crucial step toward reducing the sector’s environmental impact. With backing from major investors, the company is moving forward with plans to establish a large-scale production facility that will contribute to the broader push for sustainable industrial practices. The initiative also aligns with European policies aimed at lowering emissions and enhancing industrial independence.
In previous investments related to sustainable steelmaking, companies have focused on hydrogen-based processes and technological advancements to curb emissions. Various European players have pursued direct reduced iron (DRI) production as an alternative to traditional blast furnaces, emphasizing the sector’s shift toward cleaner solutions. Compared to earlier projects, GravitHy’s approach integrates multiple stakeholders from different industries, including energy and raw materials, ensuring a broader impact on supply chains and infrastructure development.
Who are the key investors?
The funding round attracted new investors such as Japan Hydrogen Fund, Marcegaglia, Ecolab (through Nalco Dutch Holding), Rio Tinto, and Siemens. Existing investors Engie New Ventures and InnoEnergy also contributed additional funds, reinforcing their commitment to accelerating green steel production. These investments highlight growing interest from both energy and industrial sectors in supporting low-carbon iron solutions.
Keiichi Suzuki, Partner and Head of Renewables & Sustainability at Japan Hydrogen Fund, stated, “We are very proud of being a part of GravitHy’s investors, to support one of the most important European ‘Green steel projects’.”
How will the funds be used?
GravitHy plans to allocate the capital toward advancing key project milestones, including finalizing engineering designs, securing permits, and acquiring necessary contracts. The funding will also facilitate talent recruitment, ensuring the company has the expertise required to execute its plans effectively. The company is preparing for a final investment decision in 2026, a critical step toward launching its full-scale operations.
José Noldin, CEO of GravitHy, commented, “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.”
The project is set to take shape in Fos-sur-Mer, France, where GravitHy plans to construct a facility spanning 75 hectares. The site will produce 2 million tons of direct reduced iron (DRI) and hot briquetted iron (HBI) annually. The production process will be powered by green and low-carbon hydrogen, with an electrolyser capacity of approximately 750 MW, making it one of the largest hydrogen facilities in the world. This setup aims to minimize emissions while meeting the increasing demand for low-carbon steelmaking inputs.
GravitHy’s initiative reflects broader trends in the steel industry, where companies are exploring alternative production methods to lower carbon footprints. The European Union’s industrial policies, such as the Clean Industrial Deal and Steel & Metals Transition Plan, provide additional support for such transitions. The steel sector remains a major contributor to global carbon emissions, and efforts like those of GravitHy are seen as essential for meeting climate targets.
If the project progresses as planned, commercial operations should begin by 2028, creating up to 500 direct jobs. The investment of €2.2 billion into this development underscores the scale of the undertaking and highlights the financial commitment required to advance greener industrial solutions. As regulatory frameworks evolve and demand for sustainable materials rises, initiatives like GravitHy’s will play a role in shaping the future of steel production.
