Capitalizing on Advantages: MENA's Path to Green Steel Leadership
Key Ideas
  • MENA steelmakers have the opportunity to lead in global green steel production by blending green hydrogen with gas to reduce emissions without expensive modifications.
  • Technological advancements like Midrex Flex and Energiron Zero Reformer enable the gradual transition to low-emissions production, positioning MENA for the increasing demand for green steel.
  • MENA's heavy reliance on fossil fuels for electricity remains a challenge in meeting international emissions standards, but leveraging the region's renewable energy potential can help overcome this obstacle.
  • Collaboration between EU steelmakers and MENA ironmakers is vital for a more integrated and efficient global steel supply chain as the industry moves towards decoupling ironmaking and steelmaking processes.
Steelmakers in the Middle East and North Africa (MENA) region have the opportunity to establish themselves as leaders in global green steel production according to a report by the Institute of Energy Economic and Financial Analysis (IEEFA). By integrating green hydrogen with gas in their direct reduced iron-electric arc furnace (DRI-EAF) plants, MENA manufacturers can transition to low-emissions production without costly modifications, thus aligning with international criteria for green steel. Technological solutions like Midrex Flex and Energiron Zero Reformer facilitate this gradual transition by allowing the blending of hydrogen with gas in existing plants, reducing capital costs. Despite their advantage in DRI production, MENA steelmakers face challenges due to their reliance on fossil fuels for electricity, hindering compliance with emissions standards like the EU's Carbon Border Adjustment Mechanism. However, tapping into the region's renewable energy resources can help reduce carbon emissions and improve competitiveness. The report highlights the potential for MENA to contribute significantly to global DRI capacity growth and exports, emphasizing the importance of transitioning to cleaner grids powered by renewables. Collaboration between EU and MENA steelmakers is seen as essential for a more efficient global steel supply chain. The article also mentions Germany's agreement to produce green hydrogen in Morocco for steel production, indicating a growing trend towards green steel initiatives. MENA steelmakers are encouraged to gradually shift towards low-emissions electricity and hydrogen to meet future green premium requirements and drive transformation in the steel sector.
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