New technology from Tata Steel can halve the volume of emissions created during steel production.
The process, called HIsarna, involves injecting iron ore into the top of a reactor, where it is liquefied and coal is injected, reducing the amount of energy-intensive steps needed in the process.
Normally, materials have to be pre-processed in separate coke, sinter or pellet factories.
The firm has successfully tested the new method at one of its facilities in the Netherlands, using steel scrap and biomass energy to reduce the amount of raw resources needed.
It says it could be introduced on an industrial scale, allowing 20-times more liquid iron to be produced.