Cleveland-Cliffs Inc. is advancing its transformational project at the Middletown Works facility in Middletown, Ohio, with up to USD 500 mln in potential funding from the Department of Energy. The project will replace the existing blast furnace with a Hydrogen-Ready Direct Reduced Iron (DRI) Plant and two Electric Melting Furnaces (EMF), aiming to cut carbon emissions and improve efficiency.
Negotiations with the Department of Energy are ongoing, and Cleveland-Cliffs is optimistic about securing final approvals. The new setup includes a 2.5 mln tons per annum DRI Plant and two 120 MW EMFs, which will integrate with existing infrastructure. This change will eliminate coke usage, reducing carbon intensity by over 50pct with natural gas and up to 90pct with hydrogen.
The upgrade is expected to lower production costs by USD 150 per net ton of liquid steel, saving USD 450 mln annually, excluding potential premiums from low-carbon steel sales. The facility will also avoid reliance on costly prime scrap metal, maintaining steel quality for automotive applications.
The USD 1.3 bln project will be financed through Cleveland-Cliffs’ liquidity and cash flow over a five-year period starting in 2025. The new facility will be built without disrupting current operations, ensuring smooth construction and commissioning.
Cleveland-Cliffs, headquartered in Cleveland, Ohio, is a leading North American steel producer specializing in value-added steel products and vertically integrated from iron ore mining to finished steel production.
