US-based mining and natural resources company Cleveland-Cliffs has canceled its $500 million hydrogen-based steel project in Middletown, Ohio, citing inadequate clean hydrogen supply. The company will instead extend the life of its existing coal-fired blast furnace.
CEO Lourenco Goncalves attributed the decision to hydrogen production delays and pending Trump administration policy changes for the decision, despite earlier Biden-era Department of Energy support.
The project, which included two electric arc furnace and one hydrogen-ready DRI plant, would have required an additional $1.1 billion investment from Cleveland-Cliffs beyond the federal grant, totaling $1.6 billion. Goncalves also cited difficulty finding buyers willing to pay premiums for green steel.
The company is now negotiating with the Trump administration to renegotiate its grant for different energy priorities. The cancellation represents a major setback for US clean steel production efforts as the industry struggles with technological and economic barriers to moving away from coal-based methods.
