GravitHy secures EU Innovation Fund backing for 2 mln ton low-carbon iron project

France’s GravitHy has been selected for a significant subsidy under the European Union’s Innovation Fund to support the development of a hydrogen-based direct reduced iron (DRI) and hot-briquetted iron (HBI) plant in Fos-sur-Mer, France.

The project was selected under the fund’s 2025 call for proposals for large-scale net-zero technologies and decarbonization projects. The proposed facility will have an annual production capacity of 2 mln tons and is a key step towards the company’s final investment decision (FID).

GravitHy expects the plant to avoid more than 3 mln tons of CO2 emissions annually compared with conventional ironmaking routes. The facility will use hydrogen to produce low-carbon iron for European steelmakers, helping reduce the carbon footprint of steel production and diversify regional supplies of iron feedstock.

The project has also been designated a Project of Major National Interest by the French government. Located in the Fos-sur-Mer industrial-port hub, the plant is expected to support regional industrial development through direct and indirect employment and links with nearby industrial, logistics and energy projects.

GravitHy CEO Jose Noldin said the EU backing recognized the project’s strategic importance and maturity, adding that domestic low-carbon iron production could strengthen Europe’s security of supply and industrial competitiveness while reducing reliance on imported iron feedstocks and fossil energy.