Ceremony at Baku, Azerbaijan
The development of Azerbaijan’s first large-scale Hot Briquetted Iron (HBI) facility has reached an important milestone with the completion of the Bankable Feasibility Study (BFS), confirming the technical and economic viability of the project and paving the way for the next phases of engineering and implementation. The results were presented at an event held in Baku on June 4, 2026.
Led by Azerbaijan Metal Company (AzMC), the project foresees the development of a 2.0 million tons per year HBI plant in the Shamkir region. The plant is expected to be commissioned at the end of 2029, positioning Azerbaijan as an emerging producer of high-quality metallics for the global steel industry.
A key element of the feasibility study was the evaluation of the ENERGIRON Zero Reformer (ZR) technology, jointly developed by Tenova and Danieli. Recognized globally for its high efficiency, operational flexibility, and reduced environmental impact, the ENERGIRON process enables the production of Direct Reduced Iron (DRI) and HBI with significantly lower energy consumption and CO₂ emissions compared to conventional production routes. The BFS validated the technical and economic advantages of implementing ENERGIRON Zero Reformer technology for the AzMC project, confirming its suitability for achieving both production and sustainability objectives.
Beyond the technological aspects, the project represents an important opportunity to strengthen Azerbaijan’s industrial ecosystem and establish the country as a strategic hub for sustainable steelmaking materials. The completion of the feasibility study marks the transition into the next development phase, including basic engineering activities and the preparation of the EPC framework that will support project execution.
As the steel industry continues its transformation toward lower-carbon production routes, projects such as AzMC’s HBI facility demonstrate how innovative technologies, strategic industrial development, and international collaboration can work together to create the foundations for a more sustainable future.