Hyundai Steel to build $5.8 billion low‑carbon steel mill in Donaldsonville, outlines hydrogen transition plan

Donaldsonville, Louisiana — Hyundai Steel on June 23 told the Louisiana Clean Hydrogen Task Force it plans a $5.8 billion, fully integrated electric‑arc furnace steel mill in Donaldsonville that the company says will create about 1,300 direct jobs and is intended to transition over time from natural gas with carbon capture to hydrogen‑based reduction.

The presentation was delivered by Jim Park, head of the energy and hydrogen business for Hyundai Motor Group in North America, and Peter Kim, who presented the Hyundai Steel project and described the company’s phased roadmap to low‑carbon steel. “We are very delighted and excited to be here, and thank you for inviting us to attend this session of the Clean Hydrogen Task Force meeting,” Park said during the presentation.

Hyundai Steel described a multi‑phase decarbonization plan that begins at a so‑called Level 3 approach using natural gas in a direct reduced iron (DRI) process combined with carbon capture and storage (CCS), increases adoption of blue hydrogen in a later phase, and ultimately targets Level 5 operation using green hydrogen to reach a carbon footprint “below 0.1” on the company chart. Peter Kim said the plant will deploy electric arc furnace (EAF) technology, advanced rolling lines and integrated CCS connected to the DRI process.

Why it matters: Hyundai argued Louisiana has the logistical footprint, energy infrastructure and workforce to support the facility and to catalyze a broader hydrogen ecosystem for industrial offtake and transport applications. “Louisiana is, in our opinion, uniquely positioned for a hydrogen economy,” Kim said.

Key details from the presentation and Q&A

- Hyundai Steel cited a $5,800,000,000 capital investment and said the facility would create more than 1,300 direct high‑quality jobs. The company described initial product focus on hot and cold coils for automotive applications; executives said the plant is not presently designed to produce thicker plate steel but that additional nearby capacity could be built later.

- The company’s roadmap is explicitly phased. Kim and other company speakers said Level 3 (natural gas + CCS) is the near‑term choice primarily because “we cannot find affordable hydrogen” at present. They said Level 4 (blue hydrogen integration) and Level 5 (green hydrogen) are targets as hydrogen production and costs improve.

- Executives repeatedly described a dependency on CCS and pipeline or local production for affordable hydrogen supply. In response to a question, Hyundai representatives said CCS capability is a strong dependency for their near‑term plan and that they are investing in R&D and proof‑of‑concepts for capture technology.

- The company is developing a North American hydrogen business platform (referred to in the presentation as HTWO/H2 platforms and H2 Logistics) that covers production, storage, transport and dispensing, and said Hyundai already operates hydrogen demonstrations and deployments in ports and logistics (including the Xcient fuel cell truck) and is launching second‑generation passenger fuel‑cell models in North America.

- On federal incentives, Jim Park said Hyundai has advocated for the continuation of hydrogen tax credits and that cuts or changes to federal incentives would “slow our adoption” but the company retains “an unwavering commitment” to hydrogen deployment. Park said recent congressional negotiations make him “hopeful” some form of 45V will survive in forthcoming legislation but acknowledged uncertainty.

- Company executives described current hydrogen‑on‑site or near‑site costs achieved in other deployments at roughly the $6/kg range and said parity with diesel would require additional cost declines (company remarks placed diesel parity around the $4/kg target and parity with battery electric at ~ $8/kg). They estimated technology and scale improvements could take multiple years and repeatedly referenced a 5‑ to 10‑year timeframe for phased transitions.

Discussion vs. direction vs. decision

- Discussion only: The task force heard the company’s site selection rationale, the technology roadmap (EAF + DRI + CCS → blue hydrogen → green hydrogen), cost ranges for hydrogen and estimates for a multi‑phase transition. Several members pressed Hyundai on hydrogen cost, CCS dependency, jobs, and product mix.

- Direction/assignment: Task force members invited Hyundai to keep communication open with the state and the task force on federal developments and regulatory issues; Hyundai offered to provide technical assistance and metrics to the task force on request.

- Formal action: No formal vote or regulatory authorization of the project occurred at the meeting.

Ending

Hyundai Steel framed the Donaldsonville project as part of a broader strategy to decarbonize steel supply chains for automotive and commercial customers and to seed a hydrogen economy in Louisiana. Company executives stressed the near‑term reliance on CCS and natural gas economics, and they asked state regulators and lawmakers to support predictable policy and incentives that lower hydrogen costs and accelerate the transition.