According to a report from the Institute for Energy Economics and Financial Analysis (IEEFA), as limited higher grade iron ore supply will make it difficult to realize plans for a large global scale-up of direct reduced iron (DRI) production, some steelmakers are investigating new technology combinations to enable the use of lower-grade iron ore in DRI processes, aiding the expansion of low-emissions steelmaking technology that does not use metallurgical coal. DRI technology requires a higher grade of iron ore than blast furnaces - at least 67 percent Fe content.
Germany-based Thyssenkrupp is planning a new steelmaking route that includes a submerged arc furnace (SAF) melting stage. The company’s plan is to replace four blast furnaces with new DRI-SAF technologies by 2045. The proposed production route will allow Thyssenkrupp to use blast furnace-grade iron ore pellets in its DRI processes.
Global steel giant ArcelorMittal is also looking at the DRI-SAF technology route. In March 2021, the company signed a memorandum of understanding with France-based Air Liquide to examine the use of this technology combination at its Dunkirk plant using hydrogen as the reductant, as SteelOrbis previously reported.
Australian steelmaker BlueScope is also investigating a DRI-Melter-BOF steelmaking route to allow the use of lower-grade ores. Italy-based Tenova is developing new technology to produce direct reduced iron using lower-quality blast furnace-grade pellets.
The IEEFA stated that these alternative steel technology routes could reduce the pressure of supplying DR-grade ores, shifting part of the DRI iron ore demand toward BF-grade pellets and fines.