Tenova said the plant, to be called µDRAL, will use its Energiron technology and have a nominal production capacity of 100 kg/h. Financial details of the deal were not disclosed.

Energiron facilities, which generate lower emissions in the production of coke, sintering ore and pig iron can use up to 70% hydrogen in place of natural gas, and the company has said its facilities are ready to trial 100% hydrogen as reducing agent.

DRI produced by µDRAL will be both used in the blast furnace process to save injected coal and in the electric arc furnace of the plant.

"The new direct reduction plant is the next step toward realizing the SALCOS approach", said Markus Dorndorf, business development director of Iron & Steelmaking at Tenova LOI Thermprocess, referring to a joint initiative the company has underway with Salzgitter that aims to cut CO2 emissions from steel production by up to 95%.

SALCOS stands for SAlzgitter Low CO2 Steelmaking.

"We are proud to be the partner of Salzgitter's transformation process to green steelmaking", he added.

Russian steel producer Metalloinvest in November chose Tenova's Energiron solution to upgrade a hot briquetted iron (HBI) facility at Metalloinvest's Lebedinsky GOK.