The U.S. Department of Energy has established a framework for Cleveland-Cliffs Inc. to finalize negotiations and implementation plans for its Middletown Works investment, rescoping the previously awarded $500 million DOE grant. The optimization project represents a $1 billion total investment in Middletown Works, with funding shared equally between Cleveland-Cliffs and the DOE. The investment is expected to be deployed over the next four years as the company executes on these improvements while maintaining uninterrupted steel production.
Middletown Works is Cleveland-Cliffs’ flagship plant to produce automotive-grade steels. The Middletown Works investment plan includes upgrades to its blast furnace, advanced material handling infrastructure and artificial intelligence-enabled process control technologies. A key component of the project is the construction of an advanced cogeneration facility that will capture and utilize blast furnace gas to generate electricity and steam for on-site consumption. This will improve overall energy efficiency, reduce reliance on externally supplied electricity, and lower operating costs. This multi-year investment is expected to commence in the coming weeks, with completion of the blast furnace rebuild planned for the first quarter of 2030.Lourenco Goncalves, Cliffs’ chairman and CEO, says the company is "going above and beyond a standard blast furnace reline, to include the most advanced technology available." With DOE's help, "we developed a project reliant on proven technology that improves operational efficiency and competitiveness.
Middletown Works currently produces 3 million tons of raw steel annually. The optimization project will preserve the facility's steelmaking capacity while substantially improving operational reliability, productivity, energy efficiency, and cost competitiveness.
