GravitHy, an industrial startup, is pressing ahead with its plans to build a low-emission direct reduced iron (DRI) and hot-briquetted iron (HBI) plant in Fos-sur-Mer, southern France. The company has taken a significant step forward by securing part of its future electricity needs from French energy company EDF.
According to the sources, GravitHy and EDF have signed a letter of intent (LOI) for a Nuclear Production Allocation Contract (CAPN). This agreement will provide GravitHy with access to low-carbon power for its upcoming plant.
We have to be very pragmatic. There will be a big race for electricity or hydrogen. This LOI will give GravitHy an important leverage and allow us to secure part of our electricity supply," said José Noldin, CEO of GravitHy.
The Fos-sur-Mer plant is a key part of GravitHy's strategy to contribute to the decarbonization of the steel industry, which accounts for around 8% of global CO2 emissions. The company plans to use renewable and low-carbon hydrogen to produce DRI and HBI, which will then be used as feedstock for low-carbon steel production.
The project, which represents a total investment of €2.2 billion, is expected to create 500 direct jobs. GravitHy has already completed the first phase of engineering studies, confirming the economic, technical, environmental, and regulatory feasibility of the industrial project.
The next steps for GravitHy include comprehensive project planning and launching the first calls for tenders. The company aims to begin cold operations in 2027 and reach full production capacity by 2028, contributing to the decarbonization of the steel industry and various other sectors that rely on steel.
