Alternative hydrogen-based technologies are gaining momentum
Alternatives to conventional H2-DRI in shaft furnaces primarily revolve around fluidized bed DRI reactors or hydrogen smelting plasma reduction (HSPR). Fluidized bed H2-DRI technology has been in development for years, with several small industrial-scale demonstration plants operating worldwide. Companies including POSCO, Voestalpine, and Metso Outotec, are actively developing concepts in this space.
The primary advantage of fluidized bed H2-DRI is its ability to directly use low-grade iron ore fines, unlike shaft furnaces, which require high-quality pellets as feedstock. However, these technologies still face significant hurdles in commercial scale-up and adoption.
HSPR offers a novel alternative that utilizes iron ore fines while coupling simultaneous reduction and smelting to produce molten pig iron directly. This eliminates the need for a separate electric arc furnace (EAF) as required in DRI plants. HSPR can potentially reduce hydrogen consumption and offer partial electrification through high-temperature plasma technology. Development is currently led by Voestalpine and K1-MET, with several startups planning to enter the space. However, this technology remains at a much earlier stage of technological readiness compared to fluidized bed DRI.
Electric ironmaking technologies are in the spotlight for innovation
Electric ironmaking technologies eliminate the need for hydrogen as a reducing agent through electrolysis of iron ore. Several approaches are under development worldwide. Most notably, US-based startup Boston Metal is pioneering molten oxide electrolysis (MOE), while another US startup, Electra, is developing an electrowinning approach combining aqueous-phase electrolysis and electroplating.
These companies have secured substantial funding from prominent investors including Breakthrough Energy Ventures, BHP, ArcelorMittal, and various other players from the mining, steel, and venture capital sectors. Many industry observers consider these technologies potentially disruptive, as they can entirely bypass hydrogen requirements and integrate seamlessly with existing steel mills. However, the companies developing these solutions still face many years of work to scale their technologies and achieve cost competitiveness.
Other novel technologies and further insights
Numerous companies and research institutes are developing hybrid approaches to iron ore reduction. These include Rio Tinto's BioIron, which combines microwave energy with biomass as a reducing agent, and electrified heating approaches such as Calix's ZESTY process, which utilizes an electrically heated hydrogen-based shaft furnace.
IDTechEx anticipates that while many technologies will emerge in the market, only those addressing the steel industry's core challenges while achieving cost parity with conventional natural gas-based DRI, EAF steelmaking, and blast furnace-based production will ultimately succeed.
While steel decarbonization shows promising developments, the industry continues to face substantial challenges and will remain dependent on coal-based blast furnace infrastructure for years to come. Despite these obstacles, IDTechEx projects hydrogen-based green steel production to reach 46 million tonnes by 2035 - a significant number, though still insufficient to meet 2050 net-zero targets.
For more on information on green steel and steel sector decarbonization, including downloadable sample pages, please see www.IDTechEx.com/GreenSteel.
The report provides detailed analysis of key technologies and innovations for steel decarbonization, key player activities, market dynamics, and granular 10-year forecasts by technology and region.
For the full portfolio of sustainability market research from IDTechEx, please visit www.IDTechEx.com/Research/Sustainability.
About IDTechEx
IDTechEx provides trusted independent research on emerging technologies and their markets. Since 1999, we have been helping our clients to understand new technologies, their supply chains, market requirements, opportunities and forecasts. For more information, contact research@IDTechEx.com or visit www.IDTechEx.com.
