DOE redirects $500 million steel grant to upgrade Ohio coal blast furnace

A $500 million grant awarded during the Biden administration for steel decarbonization has been repurposed by the Trump administration to modernize Cleveland-Cliffs’ coal-fired blast furnace at its Middletown, Ohio plant. The Department of Energy announced the change on Friday, and Vice President JD Vance together with Energy Secretary Chris Wright visited the site to highlight the federal support. CEO Lourenço Gonçalves described the upgrade as preserving a critical blast-furnace route for automotive-grade steel and adding a cogeneration system that will capture waste gases for steam and electricity.

The original plan would have replaced the furnace with hydrogen-ready and electric technology, cutting roughly one million tons of CO₂, but the company now aims to extend the furnace’s life for up to two decades. Local opponents, including the Sierra Club and resident Donna Ballinger, contend the shift undermines the Inflation Reduction Act’s goal of advancing advanced industrial technology to reduce emissions. A former DOE official noted the revised scope moves the facility away from net-zero targets, contrary to the law’s intent.