Direct Iron Reduction Technology Prospects for Metallurgical Decarbonization

Abstract

The metallurgical manufacturing is one of the most carbon-intensive sectors globally, accounting for over 7% of greenhouse gas emissions. The Ukrainian metallurgical industry, a strategic source of foreign revenue and an essential element of the country's economic stability, currently faces significant challenges due to the need to adapt to climate obligations outlined in the Paris Agreement, as well as the introduction of the Carbon Border Adjustment Mechanism (CBAM) in the European Union. This article provides a comprehensive analysis of the prospects for implementing direct reduced iron (DRI) technology in Ukrainian metallurgical enterprises as an effective pathway for steel decarbonization. A comparison is made between traditional methods grounded in blast furnaces and oxygen converters and the DRI technology with natural gas, coal, syngas, and hydrogen. The main advantages of implementing DRI are identified, along with the infrastructural, technological, and financial barriers that is necessary to be overcome for effective decarbonization of Ukraine’s metallurgical sector. Keywords: decarbonization, metallurgy, steel, direct recovery of iron, hydrogen, greenhouse gases, CBAM, Ukraine.