The steel industry is one of the largest industrial contributors to global carbon emissions, primarily due to its reliance on carbon-intensive processes. Traditionally, steel is produced using blast furnaces powered by coal or natural gas, emitting significant amounts of CO₂. With the global shift toward sustainable practices, the industry is under pressure to reduce its carbon footprint. Hydrogen-based steelmaking offers a groundbreaking solution to this challenge, providing a clean, sustainable alternative that could revolutionize the industry. In this blog, we’ll explore how hydrogen is poised to reshape steel production, the benefits and challenges of adopting this technology, and the promising innovations leading the charge toward a greener steel industry.
The Traditional Carbon-Based Process in Steelmaking
Steel is typically made using either a blast furnace or an electric arc furnace. In the blast furnace method, coal-derived coke is burned to generate the high temperatures necessary to melt iron ore, releasing substantial CO₂ as a byproduct. This process is responsible for around 7–9% of global greenhouse gas emissions, making it one of the most carbon-intensive industrial activities worldwide.
With the rising cost of carbon emissions and increased environmental regulation, the steel industry has been seeking cleaner alternatives. This is where hydrogen-based steelmaking comes in, offering a method that eliminates the need for carbon-based fuels and the resulting emissions.
How Hydrogen-Based Steelmaking Works
In hydrogen-based steelmaking, hydrogen gas is used instead of carbon as a reducing agent to extract pure iron from iron ore. When hydrogen reacts with iron ore, it produces water vapor instead of CO₂, eliminating carbon emissions from the reduction process.
The most promising approach to hydrogen-based steel production is Direct Reduction of Iron (DRI) using hydrogen. In this method, hydrogen gas flows through the iron ore in a shaft furnace, breaking down iron oxides into metallic iron while releasing only water vapor. This hydrogen-based direct reduction process can then be paired with an electric arc furnace (powered by renewable energy) to melt the iron, completing the steel production cycle without any carbon emissions.
Benefits of Hydrogen-Based Steelmaking
Significant Carbon Reduction By replacing carbon with hydrogen, steelmakers can drastically reduce or even eliminate CO₂ emissions associated with the reduction process. For instance, in a typical blast furnace operation, one ton of steel generates approximately 1.8 tons of CO₂. In contrast, hydrogen-based steelmaking has the potential to achieve near-zero emissions, representing a transformative shift for an industry traditionally reliant on fossil fuels.
Compatibility with Renewable Energy Hydrogen-based steelmaking can be paired with renewable electricity sources, such as wind and solar, to generate “green hydrogen” through water electrolysis. This process splits water into hydrogen and oxygen using renewable electricity, resulting in zero emissions throughout the hydrogen production and steelmaking processes.
Enhanced Energy Efficiency Hydrogen-based steelmaking is generally more energy-efficient than traditional blast furnace methods when integrated with renewable energy. Additionally, hydrogen’s versatility as an energy source allows it to be used in various industrial applications, creating synergies that further optimize energy use across sectors.
Future-Proofing Against Carbon Costs As countries tighten carbon regulations, industries face increasing costs associated with carbon emissions. Hydrogen-based steel production positions steel manufacturers to comply with stricter environmental standards, protecting them from rising carbon taxes and enabling long-term cost savings.
Innovations Driving Hydrogen Steelmaking
Several steelmakers and technology firms are already pioneering hydrogen-based steelmaking, paving the way for broader adoption.
HYBRIT (Hydrogen Breakthrough Ironmaking Technology) Developed by Swedish steelmaker SSAB, alongside partners LKAB and Vattenfall, HYBRIT is the first initiative aiming to create fossil-free steel using hydrogen. This innovative project has successfully produced the world’s first batch of “green steel” using hydrogen reduction and aims to establish large-scale production by 2035. HYBRIT exemplifies how government and industry collaboration can drive impactful technological progress.
H2 Green Steel Another Swedish initiative, H2 Green Steel, is constructing a fully integrated, hydrogen-powered steel plant scheduled to begin production by 2024. This plant will use green hydrogen for iron ore reduction, and the entire facility is designed to run on renewable energy, making it one of the most ambitious zero-emission steel projects globally.
Salzgitter AG’s SALCOS Project German steelmaker Salzgitter AG has launched the SALCOS (Salzgitter Low CO₂ Steelmaking) project, which focuses on transitioning from conventional blast furnaces to direct reduction technology using hydrogen. By converting its production infrastructure, Salzgitter AG aims to cut CO₂ emissions by up to 95% in the coming decades.
ArcelorMittal’s Hydrogen DRI Pilot Plants Steel giant ArcelorMittal is testing hydrogen-based DRI technology in pilot projects across Europe, including its Hamburg plant. By blending hydrogen with natural gas initially, ArcelorMittal is gradually reducing carbon emissions and plans to transition to 100% hydrogen once the infrastructure and cost of green hydrogen are more viable.
Challenges to Widespread Adoption of Hydrogen Steelmaking
While hydrogen-based steelmaking holds tremendous potential, several challenges need to be addressed to make this technology viable on a global scale:
High Cost of Green Hydrogen Producing hydrogen through electrolysis is still expensive, especially green hydrogen produced from renewable sources. For hydrogen steelmaking to become commercially viable, the cost of green hydrogen needs to decrease, which will likely require advancements in electrolysis technology and expanded renewable energy capacity.
Infrastructure Needs Hydrogen-based steelmaking requires significant infrastructure changes, including new furnaces, hydrogen storage facilities, and transportation pipelines. Retrofitting existing steel plants to accommodate hydrogen-based processes is a costly and complex endeavor, making it challenging for established steelmakers to make the transition quickly.
Renewable Energy Demand The hydrogen used in steelmaking must be produced using renewable energy to achieve true carbon neutrality. This shift will require substantial increases in renewable energy production, which will need to keep pace with hydrogen demand across multiple industries, not just steel.
Scaling and Commercialization Most hydrogen-based steelmaking projects are still in pilot phases. Achieving the scale needed for commercial viability and widespread adoption will take time, along with consistent investment and supportive policies to bring the technology to market at competitive prices.
The Path Forward for Hydrogen-Based Steelmaking
Despite these challenges, the momentum around hydrogen steelmaking is building, driven by growing environmental awareness, advancing technology, and supportive government policies. Key strategies for advancing hydrogen-based steelmaking include:
Investing in Green Hydrogen Production: Increasing investments in green hydrogen production and infrastructure will be essential to make hydrogen steelmaking cost-effective and scalable.
Policy Support and Incentives: Governments worldwide are recognizing the need to support the steel industry’s green transition. Carbon pricing, subsidies, and grants for research and infrastructure development will play a crucial role in accelerating adoption.
Industry Collaboration: Collaboration between steel producers, technology providers, and energy companies can accelerate the development of hydrogen-based processes. Partnerships like HYBRIT exemplify how joint efforts can achieve breakthroughs that would be challenging to accomplish in isolation.
Hydrogen-based steelmaking is on the cusp of revolutionizing one of the world’s most emissions-intensive industries. By replacing carbon with hydrogen, steelmakers can eliminate carbon emissions from the core of the steel production process, enabling a clean, sustainable future for steel. Although challenges remain, the rapid progress of pilot projects and industry commitments demonstrates a clear path forward.
