The iron and steel industry is a significant contributor to greenhouse gas emissions, responsible for about 7–9 % of the total emissions. This paper examines sustainable production methods in the iron and steel industry, focusing on decarbonization strategies and energy integration. It covers a wide range of alternative reductants to replace the conventional use of coal. Moreover, the paper highlights the challenges and opportunities associated with each approach. Additionally, it discusses the design modifications for coal‐based sponge iron plants, aiming to reduce coal consumption and waste gas generation while ensuring economic viability. This study provides a roadmap for transitioning to environmentally friendly, technically feasible, and economically viable iron and steel manufacturing processes.