Hyundai breaks ground on Louisiana steel mill. Is it green enough?

Hyundai is breaking ground this week on a nearly $6 billion steel mill in Ascension Parish, Louisiana, set to open in 2029. The plant will run on natural gas rather than coal, which Hyundai says makes its steel about 70% less carbon-intensive than steel made the traditional way. The process works by using gas to convert iron ore into a material called direct-reduced iron, which is then melted in an electric arc furnace to make steel.

This isn't the industry's cleanest possible path, though. Hyundai originally said the plant would run on green hydrogen, a fuel made from renewable electricity and water that produces no carbon pollution, but those plans have stayed vague. Meanwhile, the facility will still emit nitrogen oxide, particulate matter, and sulfur dioxide, pollutants linked to respiratory problems. Local environmental researchers argue the draft air permit understates these impacts, and nearby residents in Donaldsonville have raised concerns that the project is moving ahead before the state finishes a thorough permit review.

This is bigger-picture industry news rather than something that changes what's available to homeowners right now. Green hydrogen for steelmaking still costs too much to compete with gas, so other steelmakers, including U.S. Steel in Arkansas and a mining company in Minnesota, are also building gas-based furnaces instead. Analysts say plants like Hyundai's could still be designed to make a future switch to hydrogen easier, but for now, gas is the industry's practical middle step away from coal.