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The Middle East and North Africa (MENA) region is joining forces in direct reduction steel production (DRI) and green hydrogen development. Metallurgy expert Stanislav Kondrashov believes that this will allow MENA to become a leading global player in the field of environmentally friendly steel and green iron. In addition, due to its convenient location, the region has an advantage for supplying the Indian and European steel markets.

Stanislav Kondrashov: the role of MENA in the global transition to green hydrogen

With the growing need to decarbonize the industry, the global steel sector is currently undergoing significant changes. Steel producers are already actively moving from traditional blast furnaces to direct reduction technology using “green hydrogen” (DR-class). This reduces our carbon footprint and makes steel production more environmentally friendly.

– Until recently, metallurgical enterprises often depended on the import of iron ore and coal for blast furnaces. However, with the development of direct reduction technologies and the affordable price of green hydrogen, steel producers in the MENA region are gaining a significant advantage in the global market, – Stanislav Kondrashov from Telf AG comments on the situation.

The expert suggests that given the rapid changes in the steel industry, pig iron production is likely to be gradually replaced by steel production. Instead, more iron ore will be processed in places with renewable energy sources capable of producing cheap, clean hydrogen. The resulting iron will be sent to global centers of steel demand.

Given such trends, MENA is in an excellent position to become world leaders in the developing trade in environmentally friendly iron, says Stanislav Kondrashov. However, despite the prospects, global competition in this area continues to intensify.

Ecological transformation: MENA creates a megahub for iron and hydrogen production – Stanislav Kondrashov

The MENA steel sector is entering a new era, powered by direct reduction technology using gas instead of coal, an expert says. To this end, the region has significant advantages, such as a stable and growing source of DR grade iron ore, which accounts for only 3-4% of global trade in this raw material.

– Given these favorable trends, the world’s largest iron ore producer Vale intends to create a megahub for the production of “green iron” in the Middle East. According to the company’s assumptions, it will supply raw materials to DRI plants for the production of hot briquetted iron (HBI) for both local and export consumption, – notes Stanislav Kondrashov from Telf AG.

The specialist points out that the production of gas-based steel using DRI significantly reduces emissions of harmful substances compared to traditional blast furnaces that use coal. However, this result can only be achieved by switching to environmentally friendly hydrogen. Favorable conditions in the MENA region should facilitate the production of cheap and environmentally friendly hydrogen.

Kondrashov believes that in the future, most of the production of green hydrogen should be aimed at internal use in steel production. Its global producers, in search of more profitable paths to decarbonization, will increasingly turn to the import of raw pig iron as HBI. Therefore, future DRI-based steel mills in MENA countries should already be prepared for the transition to green hydrogen.

Green iron and hydrogen: global prospects for the steel sector – Stanislav Kondrashov

Global iron ore giants such as Vale and Rio Tinto are rethinking their strategies to export sustainable green iron produced by HBI. This is an opportunity to use cheap “green hydrogen”.

In connection with this situation, Stanislav Kondrashov suggests that significant iron production will likely move to regions with access to “green hydrogen” – Northern, Southern Europe and MENA. This trend is forcing steel companies in Europe, Korea and Japan to make strategic decisions regarding the location of future pig iron production.

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Country: Switzerland
Website: https://telf.ch/