JFE Steel pilot plant produces Japan’s ‘first’ hydrogen-based DRI

JFE Steel has produced what it calls Japan’s first hydrogen direct reduced iron (DRI) in a project funded by the country’s New Energy and Industrial Technology Development Organization (NEDO).

A 15kg per hour pilot plant at the firm’s facility in Chiba produced approximately one tonne of the metal across three days at the end of June.

The process used green hydrogen produced by a 1.5MW Yamanashi Hydrogen electrolyser, which was transported by trailer from Yamanashi Prefecture.

DRI is a process which removes oxygen from iron ore and can use natural gas, syngas, or hydrogen to create sponge iron, which can then be melted in electric arc furnaces to produce steel.

NEDO launched the JFE project to support carbon neutrality in Japan’s steel sector by 2050, with the sector currently accounting for 14% of the country’s total carbon dioxide (CO2) emissions.

Globally, the process accounts for 7% to 8% of CO2, and DRI is emerging as an important decarbonisation measure. Companies in the field suggest that by green hydrogen, over 90% of emissions associated with steel making through coal-fired blast furnaces can be eliminated.

While it has been billed as a key solution, major players have backed away from plans to scale the process amid high costs.

ArcelorMittal, the world’s second-largest steelmaker, delayed final investment decisions on its European decarbonisation projects, despite securing some €3.5bn ($4bn) in subsidies for its DRI installations.

In Europe, steelmaker Salzgitter is emerging as a frontrunner in low-carbon steelmaking with its Salcos DRI project, targeting up to two million tonnes of green steel per year, set to launch in 2027.