The steel industry is accelerating efforts to cut carbon emissions, with hydrogen and electric ironmaking technologies advancing as central pillars in the move toward sustainable production.
According to IDTechEx, hydrogen-based green steel output could reach 46 million tonnes by 2035, supported by major investments from leading steelmakers and emerging innovators.
Hydrogen-based direct reduced iron (H2-DRI) is the most widely pursued green steel route. Technologies from Midrex and Energiron have already shown hydrogen’s potential in pilot projects like HYBRIT in Sweden and HBIS in China.
Most green steel ventures, particularly in Europe and the Middle East, plan to start with natural gas before switching to low-carbon hydrogen—though this shift depends on cost reductions and infrastructure development.
Alternative approaches like fluidised bed reactors and hydrogen smelting plasma reduction (HSPR) offer additional pathways by using iron ore fines and reducing hydrogen demand.
Meanwhile, electric ironmaking methods, such as molten oxide electrolysis (MOE) and aqueous-phase electroplating, present hydrogen-free options.
Backed by players like BHP and ArcelorMittal, these startups are seen as potential disruptors but remain in early stages.
“While steel decarbonisation shows promising developments, the industry continues to face substantial challenges and will remain dependent on coal-based blast furnace infrastructure for years to come,” IDTechEx states.
