The completion of the Bankable Feasibility Study marks a significant step forward for Azerbaijan’s first large-scale HBI project, with ENERGIRON technology set to support the production of low-carbon metallics for the steel industry of the future
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.
For Tenova, which contributed key technology expertise to the feasibility study, the project represents another significant step toward enabling the transition to low-carbon steelmaking through innovative direct reduction technologies.
Supporting the Growing Demand for Low-Carbon Metallics
As steel producers worldwide accelerate their decarbonization strategies, demand for high-quality metallic charge materials is expected to grow significantly. HBI is increasingly recognized as a critical feedstock for reducing emissions in both Electric Arc Furnace (EAF) and integrated steelmaking routes, helping producers improve productivity while lowering their carbon footprint.
The AzMC project is designed to address this emerging demand by leveraging Azerbaijan’s industrial potential, strategic location, and energy resources to create a new source of premium metallics for regional and international markets.
Tenova Executive Vice-President Upstream
"The AzMC project aligns closely with Tenova’s mission to support the global transition toward low-carbon steelmaking. Azerbaijan is uniquely positioned to become a regional leader in high-quality metallics, and this initiative represents an important opportunity to introduce advanced direct reduction technology in a market with strong industrial growth potential."
ENERGIRON Technology at the Core of the Project
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.
Drawing on decades of experience in direct reduction technologies and numerous successful installations worldwide, Tenova provided critical technical input throughout the feasibility study phase, helping define the optimal process configuration for the future plant.
Building the Foundations for Sustainable Industrial Growth
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.
Related technologies
Want to know more?
Get in touch with our experts on the subject
