Technical Overview
Hydrogen is a key component in industrial chemical processes, acting as a reactant and reducing agent to develop many end-use products (i.e., steel and food). A pre-feasibility study identified Minnesota as an ideal location for producing and storing low-cost hydrogen using Midwest energy resources. The study provided a comprehensive analysis considering financial incentives, regional resource availability, detailed technology modeling, and emissions for various grid and system configurations.
The pre-feasibility study showed that Minnesota has key ingredients for innovating traditional industrial processes from:
- Abundant natural resources, including 80% of U.S iron ore that is used for steelmaking.
- Access to low-cost local energy sources, including renewable technologies.
- Access to large-scale energy storage (lined rock caverns).
- Access to existing infrastructure (e.g., railways and waterways) and raw materials.
- Trained workforce and engaged stakeholders.
Industrial Ecosystem Approach
MITI’s modern approach to four critical industries involves co-located, cross-coupled industries that link domestic energy generation and storage resources to U.S. manufacturing and production. By leveraging all available local energy sources–including natural gas, renewable energy technologies such as solar, wind, geothermal, and hydropower, as well as potentially nuclear–the initiative will add market-driven, reliable electricity to the grid, ultimately reducing the cost of industrial materials.
Iron and steel: The American iron and steel industry is a vital part of the U.S. economy, accounting for more than $520 billion in economic output and nearly two million jobs. By 2050, global iron and steel demand is projected to rise as much as 40%. However, the industry faces challenges, including projected virgin ore and scrap shortages, intensive energy use, global competition, and vulnerability to supply chain disruptions. By advancing hydrogen-based iron and steel production processes, the United States can cost effectively revitalize manufacturing, increase global competitiveness, and drive economic growth. This shift will improve energy and infrastructure affordability, reduce reliance on volatile global markets, and improve domestic access to essential materials for infrastructure, defense, and other critical industries.
E-fuels: Currently, a significant portion of the United States’ energy needs are met by imported fuels. This exposes the nation’s risk to price fluctuations driven by global events and supply chain disruptions. In contrast, e-fuels, such as sustainable aviation fuels, are a domestically producible alternative produced by combining hydrogen with captured CO2. E-fuels are hydrocarbon fuels in gas or liquid form that offer long-term, stable energy storage and high energy density. Through the adoption of e-fuels, the United States can strengthen energy security and reduce dependence on volatile global energy markets.
Cement and concrete: By mass, cement and concrete are the second-most utilized materials on Earth, after water. However, the industry faces significant energy challenges due to the high heat required for production. Innovative new materials and integrated production processes offer opportunities to improve affordability and efficiency. This industry is positioned to efficiently utilize gangue and slag, both waste products of the iron and steel industry.
Ammonia and fertilizers: Ammonia is a key ingredient in fertilizers and may play a critical role as an energy carrier for transporting and utilizing hydrogen for industrial processes. Traditional ammonia production is energy intensive and vulnerable to traditional fuel source price volatility. Through decentralized production approaches near energy resources, there is potential to decrease reliance on imported energy and improve efficiency. Moreover, the novel technological approaches offer versatility, serving as a direct fuel source and a means of storing and transporting energy, contributing to America’s energy dominance.
Phase I: Integrated Iron Ore Reduction Production Plant
To accelerate the deployment of innovative industrial applications, the project team’s first pursuit is the construction of an integrated iron hydrogen-based production plant that can accommodate alternative reducing agents (including hydrogen and hydrogen gas blends). Success of this production will result in a derisked, financeable one-gigawatt iron/steel production plant and create a proof of concept for parallel efforts across the other industrial verticals that require affordable energy and energy storage solutions.
The fully functioning plant will:
- Develop a process for producing iron using alternative reductants (including hydrogen and hydrogen gas blends) and local energy resources, achieving cost-competitiveness with traditional methods.
- Collect over 1,000 hours of continuous operational pilot data, enabling industry to design full-scale manufacturing facilities of the future.
Derisking challenges for the production plant include:
- Technology integration
- Financial viability
- Regulations, compliance, and permitting
- Supply chains and resources