Project CircSmeltSteel
Low carbon and circular valorization of secondary materials in electric furnaces for proving high quality steelmaking with excellent product properties
Overall approach
The European steel industry is undergoing a transition from the CO2-intensive blast furnace–basic oxygen furnace route (BF-BOF) to electrically based steel production. This decarbonization effort is driven by the EU Green Deal, the Clean Industrial Deal, and increasing CO2 certificate costs. However, this transformation creates a critical gap. Iron-rich by-products that are currently recycled internally via sinter plants and blast furnaces will require alternative utilization pathways once sinter plants are phased out.
CircSmeltSteel directly addresses this challenge. The project develops, validates, and scales two low-CO2 electric melting routes – the Electric Smelting Furnace (ESF, also referred to as Smelter, Submerged Arc Furnace, or Open Slag Bath Furnace) and the Electric Arc Furnace (EAF). Both technologies can process a broad portfolio of metallurgical by-products as secondary raw materials. Therefore, the CircSmeltSteel project is investigating blast furnace dust, BOF slag, EAF dust, iron-rich process sludge from an in-house steel mill wastewater treatment plant, and the iron-rich fraction of pig iron desulfurization slag, which has an average iron content of approximately 40 wt-%. Target by-product shares amount to up to 50% in the ESF and 20% in the EAF. This approach enables a significant CO2 reduction compared to the conventional BF-BOF route, which will be demonstrated within the project.
A distinguishing feature of CircSmeltSteel is its holistic consideration of the entire process chain. The project covers by-product characterization and processing (e.g., agglomeration of dusts), melting trials, secondary metallurgy, casting, hot and cold rolling, and finally the evaluation of end-product properties. The increased use of residues as secondary materials inevitably raises the input of so-called tramp elements such as nitrogen, phosphorus, sulfur, copper, molybdenum, and tin. CircSmeltSteel systematically investigates how these elements affect the formation of non-metallic inclusions, surface quality, microstructure, and mechanical properties, and develops process strategies to minimize their impact.
The combination of physics-based models and reduced-order models (ROMs) will be utilized for Level-2 process automation in the two application cases of hot rolling and annealing after cold rolling. All experimental results and models will be integrated into a common digital platform based on FAIR data principles, which will remain accessible to the steel research community beyond the project duration. Life Cycle Assessment (LCA) and Life Cycle Costing (LCC) will quantify the environmental and economic benefits, with initial estimates indicating potential product cost reductions of up to 15%.
Objectives
CircSmeltSteel pursues the following core objectives:
- Demonstration of the feasibility of utilizing iron- and metal-containing metallurgical by-products as secondary feedstock in ESF and EAF processes at pilot and industrial scale, with by-product shares of up to 50% (ESF) and 20% (EAF).
- Evaluation of CO2 reduction potential compared to the conventional BF-BOF route through the combination of electric melting technologies with bio-based carbon carriers as substitutes for fossil reducing agents.
- Characterization and quantification of the influence of tramp elements (N, P, S, Cu, Mo, Sn) on steel cleanliness, non-metallic inclusion formation, surface defects, and microstructure evolution along the entire process chain.
- Development and validation of CFD-based process models for ladle furnace treatment, Ruhrstahl-Heraeus (RH) vacuum degassing, and EAF foamy slag operation, as well as data-driven ROMs for Level-2 automation in hot rolling and annealing processes.
- Establishment of a FAIR-compliant digital platform integrating all process data, material characterizations, and models generated within the project consortium, designed for long-term availability beyond the project lifetime.
- Life Cycle Assessment (LCA) and techno-economic analysis (TEA/LCC) to quantify the environmental and economic advantages of the CircSmeltSteel process routes compared to conventional steel production.
- Development of exploitation-ready business cases and technology roadmaps for industrial scaling, thereby closing a knowledge gap that no major European project has yet fully addressed: the continuous linkage between secondary raw material quality and final steel product properties
PROJECT TIMELINE:
1 July 2026 – 30 June 2029 (48 months)
FUNDING SCHEME:
This project is funded under the European Union's Horizon Europe Research and Innovation Programme under the Clean Steel Partnership (Grant Agreement No. 101294187).
PROJECT CONSORTIUM:
Starting with the project coordinator, the consortium is composed as follows:
- K1-MET GmbH – Austria
- Materials Center Leoben Forschung GmbH
- SIJ ACRONI, podjetje za proizvodnjo jekla in jeklenih izdelkov d.o.o.
- Acciaierie d'Italia S.p.a.
- AIT Austrian Institute of Technology GmbH
- VDEh-Betriebsforschungsinstitut GmbH
- Centre de Recherches Métallurgiques ASBL
- EMG Automation GmbH
- ESTEP Plateforme technologique européenne de l'acier
- Institut für Baustoff-Forschung e.V.
- Feralpi Siderurgica S.p.A.
- Global Steel Wire S.A.
- Montanuniversität Leoben
- Primetals Technologies Austria GmbH
- Rheinisch-Westfälische Technische Hochschule Aachen
- Sidenor Aceros Especiales S.L.
- Sidenor Investigación y Desarrollo S.A.
- SSAB AB
- SSAB EMEA AB
- Swerim AB
- Fundación Tecnalia Research & Innovation
- Technische Universität Dortmund
- Universiteit Gent
- Univerza v Ljubljani
- voestalpine Stahl GmbH
- voestalpine Stahl Donawitz GmbH

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