Some steel companies in Europe especially are planning new direct reduced iron production capacity, a technology that can reduce emissions significantly when run using green hydrogen. As a result, demand for direct reduction-grade (DR-grade) iron ore is set to rise.
The challenge imposed by limited DR-grade iron ore supply on plans for a large global scale-up of DRI production is significant.
To avoid locking in further coal-based steelmaking capacity for decades, some technology switching to DRI processes will be required before 2030 to achieve net zero by 2050.
Iron ore quality a potential headwind to green steelmaking – Technology and mining options are available to hit net-zero steel targets
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