In a major step toward decarbonising Europe’s steel sector, French cleantech startup GravitHy has raised €60 million to accelerate the transition to low-carbon iron production. Backed by a diverse group of global investors, the company aims to significantly reduce the steel industry’s massive carbon footprint, a critical challenge for Europe’s climate goals.
This fresh funding round attracted new strategic players, including the Japan Hydrogen Fund (managed by Advantage Partners), Italian steel processor Marcegaglia, Ecolab through Nalco Dutch Holding, mining giant Rio Tinto, and Siemens. Existing backers like Engie New Ventures and InnoEnergy also doubled down on their support.
The investment underscores growing international interest in green steel solutions, especially in fostering stronger Euro-Japan partnerships via hydrogen-focused ventures. This capital will power GravitHy’s roadmap as it heads towards a final investment decision in 2026.
Pioneering Green Iron to Disrupt the Steel Value Chain
Founded in 2022 by a consortium of industrial heavyweights such as EIT InnoEnergy, Engie New Ventures, FORVIA, GROUPE IDEC, Plug, and Primetals Technologies, GravitHy is tackling the climate burden of traditional steelmaking. The sector is one of the world’s most carbon-intensive industries, responsible for nearly 8% of global CO2 emissions.
GravitHy’s solution? Produce Direct Reduced Iron (DRI) and Hot-Briquetted Iron (HBI) using renewable and low-carbon hydrogen. This process bypasses the need for coal in ironmaking, slashing emissions by up to 90% compared to conventional methods.
Unlike other green steel initiatives such as H2 Green Steel, HYBRIT, or SSAB, which focus on integrated steel production, GravitHy specializes in supplying low-carbon DRI/HBI as a flexible feedstock. This model enables traditional steelmakers to produce green steel without overhauling their existing operations or investing heavily in the full hydrogen value chain.
Driving Europe’s Clean Industrial Revolution with Green Hydrogen
GravitHy’s flagship project in Fos-sur-Mer, France, exemplifies Europe’s ambitious push for industrial decarbonisation and sovereignty. With a planned €2.2 billion investment, the facility will feature Europe’s largest electrolyser at 750 MW, capable of producing green hydrogen on-site.
Once operational by 2028, the plant will produce 2 million tons of DRI/HBI annually — the equivalent of building one Eiffel Tower per day. This will create up to 500 direct jobs, fueling local economies while significantly cutting carbon emissions.
GravitHy’s efforts align with the European Commission’s Clean Industrial Deal and Steel & Metals Transition Plan, creating a solid legislative foundation to support the shift toward low-carbon steel production.
A New Era for Low-Carbon Metallics and Euro-Japan Collaboration
Conventional coke-based ironmaking generates over 80% of CO2 emissions in the steel production process. With demand rising for low-carbon materials, GravitHy’s project is positioned to reshape global trade flows of metallics, making low-carbon DRI/HBI a vital commodity in the green transition.
CEO José Noldin expressed confidence in the company’s growing momentum, stating: “Collaboration is key to transforming the steel industry. With such a strong group of global partners, we’re accelerating our Fos-sur-Mer project, creating jobs, driving innovation, and building a resilient, decarbonised European steel sector.”
The project has also been recognized under the France 2030 initiative, reinforcing the French government’s commitment to developing homegrown green steel capacity.
Global Support Fuels GravitHy’s Decarbonisation Mission
Diego Pavia, CEO of InnoEnergy, added, “This milestone confirms strong market demand for low-carbon iron. GravitHy’s vision is a game-changer for Europe’s green industrial ambitions.”
Similarly, Keiichi Suzuki from the Japan Hydrogen Fund highlighted the investment’s importance, noting, “The steel industry is one of the toughest to decarbonise. Through this partnership, Euro-Japan collaboration strengthens, bringing Japanese value to one of Europe’s most significant green steel projects.”
With robust backing from investors across the value chain, GravitHy is poised to deliver a scalable solution that supports steelmakers in meeting net-zero targets while safeguarding their core businesses.
