Multi-Country Hydrogen-Based Iron-Ore-to-Green-Steel Breakthrough in Namibia

Why It Matters

It lowers raw‑material costs and removes a key bottleneck in scaling green‑steel, accelerating the steel sector’s decarbonisation agenda.

Key Takeaways

• First industrial hydrogen kiln processes 56% iron ore.
• Five tonnes per hour throughput proves economic viability.
• €4.5 M ($4.9 M) German funding supports the pilot.
• Enables green steel without premium ore or pelletising.
• Namibia’s solar power fuels low‑carbon iron reduction.

Pulse Analysis

The steel industry, responsible for roughly 7 % of global CO₂ emissions, has long been constrained by the need for high‑grade iron ore and energy‑intensive pelletising. Hydrogen‑based direct reduction offers a pathway to eliminate fossil‑fuel use, but until now it required ore with about 70 % iron content—materials that are scarce and costly. By proving that a 56 % iron ore can be turned into DRI in a climate‑neutral rotary kiln, the Namibia pilot reshapes the economics of green steel and widens the supply base.

The SuSteel AG consortium—comprising Australian miner Fortescue, German research institutes, and Namibia’s HyIron Green Technologies—leveraged the country’s abundant solar power to run the hydrogen kiln at five tonnes per hour. Backed by €4.5 million (≈$4.9 million) from Germany’s Federal Ministry of Research, the project demonstrates that low‑grade ore can be processed without the costly pelletising step, cutting both capital and operating expenses. This cost advantage is critical for automakers and other steel‑intensive sectors seeking to meet tightening emissions regulations while maintaining price competitiveness.

Looking ahead, the DRI will be shipped to Salzgitter Mannesmann Forschung in Germany, where engineers will test its integration into existing furnace lines for automotive‑grade steel. Success could trigger a cascade of similar pilots across ore‑rich regions, leveraging renewable energy to decarbonise the upstream value chain. As governments and investors prioritize climate‑friendly manufacturing, the ability to produce green steel from abundant, lower‑grade ores positions the consortium to capture a sizable share of the emerging low‑carbon market.