MENA Steel Industry's Green Revolution with Green Hydrogen
Key Ideas
  • MENA steelmakers are leading the way in adopting DRI technology and green hydrogen for low-carbon steel production.
  • Global DRI capacity is projected to increase, with MENA expected to be a major exporter by 2050.
  • Renewable energy integration and hydrogen utilization are crucial for MENA steelmakers to reduce emissions and stay competitive.
  • Collaboration between steelmakers and hydrogen developers is vital for overcoming challenges in green hydrogen adoption.
The Middle Eastern and North African (MENA) steel industry is embracing a green revolution by rapidly adopting direct reduced iron (DRI) technology and green hydrogen to produce low-carbon steel. By utilizing DRI technology and electric arc furnaces, MENA steelmakers are significantly reducing their carbon footprint compared to traditional methods. Projections suggest that by 2030, global DRI capacity will reach 175 million tonnes annually, with the MENA region contributing 69 million tonnes. By 2050, global demand for DRI is expected to rise to 320 million tonnes, positioning MENA as a major exporter. To further solidify their position in the global market, MENA steelmakers need to integrate renewable energy sources and transition from natural gas to hydrogen in their operations. Green hydrogen is crucial for reducing both direct and indirect emissions in steel production. Developing green hydrogen infrastructure will be essential for the MENA region to meet international standards for low-emission steel. Several projects in the MENA region are underway to expand low-emission iron and steel production capacities. Major players like Turkish steelmaker Tosyali and the Libya United Steel Company are collaborating to establish a large DRI facility. Additionally, companies like CWP Global plan to utilize hydrogen for green hot briquetted iron production, gaining recognition from the European Commission. While carbon capture technologies have limitations, the transition to green hydrogen is seen as a more effective approach for reducing emissions. MENA steelmakers can leverage their existing capacities and renewable energy potential to start their green transition. By shifting to renewables and integrating green hydrogen, MENA producers can gain a competitive advantage, particularly in the European market with the introduction of the Carbon Border Adjustment Mechanism (CBAM). Collaborative efforts between steelmakers and hydrogen developers are key to driving the adoption of green hydrogen and ensuring market competitiveness in the emerging green steel sector.
ADVANCEH2

Our vision is to be the world's leading online platform for advancing the use of hydrogen as a critical piece needed to deliver net-zero initiatives and the promise of a clean H2 energy future.

© 2024 AdvanceH2, LLC. All rights reserved.