IEEFA Flags Ore-Quality Barrier for DRI Smelting Pathway
The direct reduced iron and electric arc furnace (DRI-EAF) route to lower-emissions steel depends on scarce high-grade feedstock, requiring DR-grade ore with more than 66% iron and less than 3.5% silica plus alumina, according to the Institute for Energy Economics and Financial Analysis (IEEFA).
That requirement sits awkwardly against the world's largest iron ore supply base. Australia produces about 900 million tonnes a year and accounts for half of global seaborne supply, according to IEEFA. Much of that output does not meet DR-grade specifications.
Electric smelting furnaces offer a workaround. IEEFA analyst Soroush Basirat says the furnaces can handle high-gangue feedstocks and produce iron comparable to the pig iron from blast furnaces. That capability sets them apart from the EAF, which needs cleaner input.
Earlier efforts to adapt ironmaking to lower-grade ore fell short. Attempts by BHP and Rio Tinto to develop new ironmaking pathways in the early 2000s in Western Australia were unsuccessful, according to IEEFA.
Activity is building elsewhere. Several DRI projects are under construction or close to final investment decision in Europe, the United States, the Middle East and North Africa, according to IEEFA.
Source: ieefa.org (opens in a new tab)1 sourcePermalink