The Middle East and North Africa (MENA) region could become a global leader in green steel and the emerging green iron trade as it has a significant opportunity to combine its direct reduced iron (DRI)-based steelmaking leadership with its green hydrogen production, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA).
The region has competitive advantages such as being well situated to supply India and Europe, having DRI production, an established supply of high-grade iron ore, cheap solar resources and large hydrogen projects.
IEEFA stated that, to achieve its potential, the region should redirect green hydrogen from exports to local iron and steel production, stop investing in carbon capture, utilization and storage technology, make sure all new DRI plants are hydrogen-ready and move faster than other potential green iron producers such as Brazil, Canada and Australia.
MENA’s steel sector is already expanding, with numerous plans for new DRI-based plants in Saudi Arabia, Oman and the UAE that will initially run on gas and transition towards hydrogen.