WASHINGTON, D.C. — The U.S. Department of Energy awarded Cleveland-Cliffs $500 million toward a $1 billion modernization of its Ohio steel plant after the company abandoned an earlier project because customers were unwilling to pay higher prices for lower-emission steel.
The revised investment will rebuild and upgrade the existing coal-fired blast furnace at Cleveland-Cliffs’ Middletown Works, protecting approximately 2,300 jobs and preserving a domestic steel supply serving automotive, appliance and other manufacturers.
Cleveland-Cliffs determined that its original project no longer made financial sense because customers would not accept a “green premium” for steel, according to the Energy Department.
The company and federal officials subsequently developed an alternative centered on improving the efficiency of the plant’s existing coal-fired ironmaking operations.
The project will incorporate artificial intelligence to optimize furnace performance and reduce energy consumption.
An on-site facility will capture blast furnace gas generated during steel production and convert it into electricity.
Additional investments are expected to turn industrial byproducts into materials used in concrete for regional infrastructure projects.
Construction is expected to begin in the coming weeks.
Vice President JD Vance and Energy Secretary Chris Wright visited the Middletown facility Friday to discuss the investment.
“It will modernize one of our nation’s critical steelmaking facilities, protect thousands of jobs, and strengthen our domestic steel production,” Wright stated.
Middletown Works supplies steel to manufacturers in the automotive, heating and cooling, appliance and steel-distribution industries.
Assistant Energy Secretary Audrey Robertson indicated that the project is intended to maintain domestic supplies of high-purity steel and support the competitiveness of those industries.
Cleveland-Cliffs is the largest flat-rolled steel producer in the United States, according to the department.
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