Information on the Target

GravitHy is a pioneering company based in Paris, France, dedicated to the production of sustainable iron. Established in 2022, GravitHy aims to contribute to the growth of a decarbonized steel market by producing reduced iron utilizing low-carbon hydrogen, significantly reducing emissions in the steel industry. The company plans to construct a hydrogen direct reduction iron manufacturing plant in the Fos-sur-Mer region of southern France, with an anticipated start of trial operations in 2028 and full operations in 2029. The total investment for this plant is projected at €2.2 billion, expected to create up to 500 direct jobs.

Equipped with around 750 MW of electrolyzer capacity—one of the largest in France and among the largest globally—the plant aims to produce 2 million tonnes of Direct Reduced Iron (DRI) and Hot Briquetted Iron (HBI) annually. This endeavor not only supports the steel demand but also strives to reduce greenhouse gas emissions, addressing the sector's significant ecological impact.

Industry Overview in France

The steel production sector accounts for approximately 8% of global greenhouse gas emissions, with traditional coke-based steelmaking processes responsible for over 80% of emissions within this sector. This highlights the critical need for cleaner alternatives in steel production. France, as part of the European Union, has committed to ambitious climate targets, driving investments in renewable energy and low-carbon technologies.

As part of these initiatives, the French government has been promoting a transition towards greener industrial practices, including the development of hydrogen as a key energy source. The hydrogen economy is gaining traction, bolstered by state policies and collaborations aimed at fostering innovation and sustainability within industrial processes.

In this context, the project by GravitHy stands out as a promising solution for the steel industry's decarbonization. By harnessing low-carbon hydrogen, GravitHy not only addresses environmental concerns but also positions itself strategically within a rapidly evolving sector where sustainability is becoming paramount.

This move aligns with the European objective to boost its competitive edge in the global market by becoming a leader in the production of clean steel, thereby enhancing energy security and creating new employment opportunities.

The Rationale Behind the Deal

The investment agreement between the Japan Hydrogen Fund L.P. (referred to as the

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