The Future of Steelmaking
How Novel Iron making Processes Can Reduce Carbon Footprint
Steel is the backbone of modern civilization, forming the structural core of cities, mobility, infrastructure, and clean energy solutions. Today, over 1.9 billion tonnes of steel are produced globally every year, making it one of the most heavily used industrial materials on the planet.
However, this vital industry also presents a formidable climate challenge: the iron and steel sector accounts for 7–9% of global greenhouse gas emissions and consumes nearly 7% of the world’s total energy supply*.
With global demand expected to rise, driven by infrastructure expansion in emerging economies like India, ASEAN, and Africa, the urgent need to decarbonize steelmaking is undeniable. From green hydrogen to carbon capture, the future of steel depends on novel iron making processes that dramatically reduce emissions while maintaining efficiency, safety, and output.
A Carbon-Intensive Process in Need of Change
Traditional blast furnace-based steelmaking relies heavily on coal as a reducing agent, emitting substantial amounts of CO₂ throughout the production cycle. While incremental gains in energy efficiency and recycling have helped, transformational change is required to align with global climate targets and ensure a more sustainable steel value chain.
Here are the new novel ironmaking processes that are reducing carbon footprint and revolutionizing steel production:
1. Hydrogen-Based Reduction: A Clean Chemical Shift
Hydrogen-based direct reduced iron (H-DRI) technology offers one of the most promising pathways to decarbonization. Instead of carbon, hydrogen gas is used as the reducing agent to convert iron ore into metallic iron, emitting only water vapor as a by-product.
According to recent studies, flash ironmaking using hydrogen can reduce CO₂ emissions by up to 96% compared to conventional blast furnaces. However, its scalability hinges on the availability of green hydrogen, which requires renewable energy-powered electrolysis and robust supply infrastructure. While challenges remain in heat management and maintaining steel quality, hydrogen ironmaking is steadily gaining traction as a cornerstone of the future.
2. Direct Electrification: Reimagining the Furnace
One promising approach is the direct electrolysis of iron ore, which uses renewable electricity to extract iron without relying on fossil fuels. This process, still in development, has the potential to enable near-zero emissions steel production, particularly in regions with abundant green energy sources.
However, electrified reduction is energy-intensive, demanding significant advancements in high-temperature electric systems and cost-effective renewable energy access. The potential for full decarbonization remains high, provided the technology matures alongside grid modernization.
3. Bioenergy and Carbon Capture: Closing the Loop
Using biomass-based fuels in combination with carbon capture, utilization, and storage (CCUS) technologies is a new emerging approach for sustainable steelmaking. By capturing and storing emitted carbon and replacing renewable organic matter for fossil fuel-based energy, this approach drastically lowers the net carbon output. Carbon-negative steel, in which more CO₂ is captured than released during the process, could be produced by such systems in specific configurations.
Nevertheless, there are still issues with increasing biomass production, ensuring steady energy output, and optimizing the economic feasibility of large-scale CCUS implementation.
4. Other Complementary Innovations
Beyond ironmaking, sustainability also lies in improving existing steelmaking efficiencies, such as optimizing coke dry quenching, maximizing top gas recovery, and increasing pellet feed ratios. At the same time, boosting steel recycling offers major energy and emissions savings, with recycled steel requiring 75% less energy than primary production.
The Flash Ironmaking Technology (FIT), which uses ultra-fine iron ore particles in a reactor for rapid reduction, adds another promising tool to the decarbonization toolbox.
The Role of Refractory Innovation in Sustainable Steelmaking
Refractory materials are essential to the steelmaking process, enabling high-temperature operations while directly influencing energy efficiency, emissions, and product quality. Innovations in refractories—such as those designed for enhanced steel cleanliness and extended service life—can significantly reduce operational downtime, material consumption, and energy loss.
A comprehensive approach to refractory usage—considering factors like installation techniques, thermal performance, CO₂ emissions, and alignment with circular economy principles—is key to supporting low-carbon steel production. Advancements in refractory product development, digital monitoring, and equipment design are further contributing to the industry’s decarbonization goals and overall environmental performance.
A Just Transition for a Greener Tomorrow
In addition to being a climate necessity, decarbonizing the steel sector offers a chance for comprehensive change in the areas of the economy, society, and environment. Financial viability, organizational adaptability, and behavioural change management must all be taken into account as stakeholders from all points of the value chain invest in green steel technologies.
The transformation of the steel industry ultimately depends on the convergence of several technologies, ethical manufacturing methods, and ongoing innovation in all supply chain links, including refractories, rather than on a single breakthrough.
By working together, these initiatives can pave the way for a time when steel continues to be the foundation of advancement without compromising the health of our planet.
Article by Mr. Ish Mohan Garg, Senior Vice President of Calderys APAC region.
