Cleveland-Cliffs and the Department of Energy announced a significant shift in direction for the Middletown Works steel mill in Ohio, moving away from previously approved clean energy initiatives. The company had been selected in March 2024 to receive up to $500 million from the U.S. Department of Energy to modernize the facility by replacing its coal-fired blast furnace with hydrogen-ready Direct Reduced Iron production technology and electric melting furnaces.
The original project promised substantial environmental and economic benefits, including reducing carbon emissions by approximately one million metric tons annually while cutting local air pollution from smog and soot. The modernization was projected to secure 2,500 union jobs, create 170 permanent positions, and generate 1,200 construction jobs, while reducing production costs by $150 per ton of liquid steel, valued at $450 million in annual savings. The Middletown facility was selected as the nation’s first demonstration of a unionized, coal-based integrated mill transitioning to cleaner steelmaking methods.
The revised proposal instead directs federal funding toward installing a natural gas cogeneration plant, a standard efficiency technology that burns blast furnace gas to generate electricity and steam. This approach represents existing technology already operated at the company’s other facilities. The facility currently ranks among Ohio’s top 10 industrial polluters for carbon monoxide, lead, fine particulate matter, nitrogen oxides, and sulfur dioxide. According to an analysis using EPA modeling, current pollution from Middletown Works is estimated to contribute to 37 to 67 premature deaths annually, along with thousands of asthma cases and emergency room visits.
The decision has drawn criticism from environmental organizations and community advocates who argue the reversal contradicts commitments to modernize steelmaking in the region and protect public health. Supporters of the original project contend that federal funding should support genuine decarbonization rather than efficiency improvements to existing coal-based infrastructure.
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