For its first decarbonized iron production plant, GravitHy awarded IDOM the FEL 2 engineering development contract.
Following a comprehensive call for tenders addressed to worldclass engineering companies, GravitHy has selected Spanish company IDOM to accompany the engineering to setup a first decarbonized iron production plant in Fos-sur-Mer (France).
This collaboration aims to cover the FEL 2 engineering phase of the project.
In more details, the contract will enable to:
• Develop the plant design work started in FEL1,
• Cooperate in the selection of the original equipment manufacturers,
• Pursue with the permitting process,
• Identify and provide an actionable framework to secure all the Long Lead Items,
• Support the financing stakeholders information needs,
• Progress with the refinement of the CAPEX and OPEX, to a higher accuracy,
• Update the Risk Assessment program,
• Challenge the FEL2 defined Project Implementation Strategy to consolidate the plans for future FEL3 stage.
This FEL2 stage will be performed along 2024. The FEL 2 execution will enable GravitHy to continue its de-risking strategy, place the project in the optimum condition with the OEM selected, a finetuned CAPEX to proceed with financing and investment decision process, and a solid basis for the
commencement of the basic engineering phase (FEL 3) within 2025.
The construction of the plant should begin within 2026 for commissioning in the second half of 2028, which will lead to the annual production of 2Mt of low-carbon Iron (HBI1/DRI2), through the use of decarbonized hydrogen also produced on site. HBI/DRI are an intermediate product, available to steelmakers wishing to produce low carbon steel.
Omar Baali, Execution Manager, states “The multinational dimension of IDOM and its track-record and expertise on large-scale projects like ours are valuable assets for the development of our engineering. We salute the quality of IDOM’s response to the call for tenders, this collaboration marks the actual beginning of a phase that will eventually lead to the construction of our first plant in 2026″.
Andoni Borjabaz, IDOM M&M Director, states « For IDOM, it is an honor and a satisfaction to be part of a pioneering and strategic project in the field of energy transition, that seeks to develop and apply innovative solutions for the production of iron using low carbon hydrogen, thus reducing CO2 emissions and contributing to the decarbonization of the steel industry.
This project allows IDOM to bring into, in two key sectors for the future of the economy and the environment such as, steelmaking and hydrogen, the experience that for decades, we have been developing to our clients in these areas, through our Metals&Minerals, O&G, and Energy divisions among others.
I am convinced that this project will be a success and a benchmark for the sector, and thus I deeply appreciate the trust placed in IDOM by GravitHy to continue in the development of their project. »
HBI1: Hot Briquetted Iron
DRI2: Direct Reduced Iron
GravitHy, a decarbonized iron production company, was launched in July 2022. GravitHy will address the expanding market for low carbon steel. It aims to reduce the sector’s emissions by producing and using green and low-carbon hydrogen to manufacture reduced iron. This iron will be sold to steel makers locally or on a European scale and used as raw material for the production of green steel. The company’s shareholders include EIT InnoEnergy, Engie New Ventures, FORVIA, GROUPE IDEC, Plug and Primetals Technologies.
