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Steelmaker retreats from clean energy plans as hydrogen costs and politics shift

Cleveland-Cliffs is scaling back plans to build the nation's first green steel plant in Ohio, pivoting away from hydrogen and back to fossil fuels as federal incentives face repeal and political winds change in Washington.

Alexander C. Kaufman reports for Canary Media.

In short:

Cleveland-Cliffs was set to retrofit its Middletown, Ohio, mill with hydrogen-ready equipment and electric melting furnaces, backed by $500 million in federal funds. The plan is now in doubt as the company reconsiders using cheaper fossil fuels instead.
CEO Lourenco Goncalves cited limited access to green hydrogen and high costs as major barriers. Proposed federal cuts to hydrogen subsidies could further derail the project’s financial viability.
The switch threatens both environmental and economic goals, including the creation of 2,300 jobs and $373 million in local economic activity projected by a clean-energy think tank.

Key quote:

“Without hydrogen, the entire thing falls apart.”

— Lourenco Goncalves, CEO of Cleveland-Cliffs

Why this matters:

Steelmaking is one of the world’s dirtiest industries, responsible for up to 8% of global carbon emissions. Transitioning away from coal-based production is critical for slowing climate change and curbing toxic air pollution, especially in industrial towns already burdened by health risks. Hydrogen offers a potential clean fuel, but without infrastructure, incentives, or scale, companies struggle to justify the shift. Political changes — like President Trump’s efforts to unwind climate-era policies — compound the challenge, leaving federal goals vulnerable to reversal. As the U.S. falters, competitors in Europe and Asia press ahead, threatening America’s role in the emerging clean manufacturing economy. What happens in Middletown could signal the fate of green steel in the U.S.

www.canarymedia.com

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California mining company turns to solar heat but can’t quit coal just yet

In California’s Mojave Desert, a mining plant is turning to solar thermal energy to replace one of its coal-fired generators, but a second unit may run for years due to the intense heat and 24-hour power it needs.

Ivan Penn reports for The New York Times.

In short:

Searles Valley Minerals, a mining company in Trona, Calif., is replacing one of its two coal plants with a solar thermal system but says the other may need to stay online for the foreseeable future due to operational demands.
The company will use a concentrating solar power system from start-up GlassPoint, which uses mirrors to generate high heat, a solution that works well in hot, sunny areas but requires a large land footprint and remains rare in the U.S.
Despite California’s push to phase out coal and President Trump’s efforts to revive it, economic and geographic constraints continue to complicate full industrial transitions away from fossil fuels.

Key quote:

“We just think coal is going to be a problem. We’re going to have a hard time sourcing it. We need to be ready to pivot.”

— Dennis Cruise, president of Searles Valley Minerals

Why this matters:

Industrial heat — the kind used in mining, chemical production, and heavy manufacturing — accounts for about half of global energy use, yet it’s rarely mentioned in public climate debates. Unlike home heating or car travel, generating this level of heat without fossil fuels is still tough. Most renewable energy technologies don’t deliver the extreme, continuous heat these facilities need. That leaves industries like the one in Trona stuck with coal, even as it becomes harder to source and politically unpopular. As the U.S. attempts to decarbonize, industrial energy needs present one of the biggest hurdles.

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Steelmaker retreats from clean energy plans as hydrogen costs and politics shift

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