Unlocking green iron, without locking in gas: Renewables could take lead position via direct reduced iron at existing plants

Research published today shows how steelmakers can unlock low-emissions iron production by using renewable electricity at existing production sites, while avoiding the use of natural gas and the risk of a prolonged dependence on fossil fuels.

A new briefing note from the Institute for Energy Economics and Financial Analysis (IEEFA) explores the potential of coke oven gas (COG) as a fuel source for the production of direct reduced iron (DRI) – widely recognised as a key pathway for decarbonising iron and steelmaking. Entitled Leapfrogging gas: How renewables can unlock new DRI on brownfield sites, the briefing note shows how diverting COG towards DRI production could reduce costs and emissions, while preparing steelmakers for a future switch to green hydrogen.

“Steelmakers do not need to build a new dependence on natural gas to start moving beyond blast furnace ironmaking,” says Lachlan Wright, Energy Finance Analyst, Global Steel at IEEFA and the note’s author. “Renewables and targeted electrification could unlock an alternative at existing sites, reducing exposure to volatile gas markets, while laying the groundwork for near-zero-emissions iron production.”

DRI uptake is gaining momentum worldwide, with a large rise in project announcements and construction activity since 2020. However, the projects in development have often been designed to initially run on natural gas, potentially locking them into long-term use of the fossil fuel. Moreover, many of these projects have struggled as natural gas prices have increased – particularly in Europe.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →