Traditional coal-based steel and high-purity iron production is a dirty and expensive process. It’s essential for everything from cars and housing to AI data centers and rare earth magnets, which are needed for defense systems, EVs, robotics, smartphones, medical devices and more, so it needs to happen. But there may be a cheaper, cleaner way to do it.
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Hertha Metals, a clean steel production startup, says it has successfully demonstrated its single-step process for turning low-grade iron ore into molten steel or high-purity iron. The company built a pilot plant in Texas and it’s been churning out one ton of steel per day for months now. Next year, the company plans to build a new facility capable of 9,000 tons per year and soon after, it anticipates scaling to 500,000 tons per year, on par with what commercial U.S. steelmaking micro mills are producing today.
To do this, Hertha will rely on its proprietary furnace that can process low-grade materials like iron ore fines and even mill scale, which is a waste byproduct of conventional steelmaking. The company said that its furnace not only turns less desirable materials into valuable resources, but it’s 30% more energy efficient than conventional steelmaking in the process.
The furnace also runs on either domestic natural gas or clean hydrogen, meaning it can cut emissions anywhere from 50% to 98%.
Perhaps most importantly, Hertha designed its system to integrate directly into existing steel mills, which means producers won’t need entirely new facilities if they want to adopt the company’s green technology. And even smaller plants will be able to operate profitably due to Hertha’s modular design.
With backers including Bill Gates recently placing a $17 million bet on Hertha, the company may have the momentum to help the U.S. create a reliable, domestic supply of steel and high-purity iron.
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