Hydrogen based direct reduction is expected to become one of the main levers to reduce CO₂ emissions in future iron and steelmaking. For melting and refining of the direct reduced iron typically an electrically heated furnace is used. As most of the iron ores globally are of lower grade and beneficiation has its limits, a new type of furnace - the Smelter - is required. This furnace allows to process direct reduced iron made from low grade ores in an efficient way, producing hot metal that is refined to crude steel in a converter or charged to an electric arc furnace and a slag that fits for the cement industry. Based on detailed process calculation, the business case for this new process route could be confirmed and furnace design developed. After successful testing two projects for first industrial realization are now under execution.