According to a report from the Institute for Energy Economics and Financial Analysis (IEEFA), steelmakers must switch their production route from blast furnaces, which consume coal, to green hydrogen-based direct reduced iron (DRI) processes to reach net zero emissions by 2050. DRI technology requires a higher grade ofiron orethan blast furnaces - at least 67 percent Fe content, though limited higher gradeiron oresupply will make it difficult to realize the plans for a large global scale-up of DRI production, and, consequently, the decarbonization of the steel industry.
“Iron oreminers continue to be largely focused on producing lower quality blast furnace-grade iron ore as this coal-consuming technology still produces the great majority of the world’s steel,” the report said.
The deposits of high-gradeiron oreare scarce, butminingoptions, such as magnetitemining, are available to alleviate the DR-gradeiron oresupply issue. Magnetiteiron oreis often more suitable and preferable for further processing and producingiron oreconcentrate and pellets of DR-grade quality. The beneficiation of some existingiron oreproduction towards DR-grade is also possible.
Meanwhile, Germany-basedThyssenkruppis planning to begin replacing blast furnaces with DRI plants from 2025 on, whileArcelorMittalandBlueScopeare examining similar DRI-melting unit combinations that would allow the use of blast furnace-gradeiron orein direct reduction processes.