Cleveland-Cliffs Cancels $500M Hydrogen Steel Plant Project in Ohio

Cleveland-Cliffs Inc. (NYSE:CLF) announced on Tuesday that it has officially canceled its $500 million hydrogen-powered steel project in Middletown, Ohio. The decision was made due to concerns about not having enough clean hydrogen supply. Instead, the company will focus on extending the life of its existing coal-fired blast furnace.

CEO Lourenco Goncalves explained that delays in producing hydrogen and uncertainty around policies from the Trump administration were major factors behind the move. This came despite earlier support through a $500 million grant from the U.S. Department of Energy under the Biden administration, which aimed to replace the coal furnace with a hydrogen-powered plant.

Goncalves made the following comment at an event hosted by the American Iron and Steel Institute:

"Without hydrogen, the entire thing falls apart. At the very least, I will not have hydrogen at the time I need for that specific project."

Goncalves added that, even with the grant, the company would need to invest an extra $1.1 billion, making the total project cost $1.6 billion. Cleveland-Cliffs Inc. (NYSE:CLF) is currently in talks with the Trump administration to adjust the grant to fit new energy goals. The CEO also mentioned that the U.S. Federal Reserve’s decision not to lower interest rates is reducing demand for steel used in construction and manufacturing.

Cleveland-Cliffs Inc. (NYSE:CLF) is an American steel company located in Cleveland, Ohio. They focus on mining and processing iron ore into pellets, as well as producing steel and providing stamping and tooling services.

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