Hydrogen DRI Steelmaking Explained
How direct reduced iron (DRI) works with natural gas and hydrogen, why it matters for low-carbon steel, the role of electric arc furnaces, and the relevance for Saudi Arabia.
Saudi Steel Work Editorial Team · · 3 min read
Short answer: Direct reduction removes oxygen from iron ore pellets in solid state using a reducing gas, producing direct reduced iron (DRI) that is then melted in an electric arc furnace. Using natural gas already emits less CO₂ than coal-based blast furnaces; replacing some or all of the gas with hydrogen — ideally produced with renewable energy — can cut emissions much further, because hydrogen reduction produces water instead of CO₂.
Steelmaking accounts for a significant share of global CO₂ emissions. Direct reduction, especially with hydrogen, is one of the main decarbonisation routes.
Two main steelmaking routes
Blast furnace – basic oxygen furnace (BF-BOF): iron ore is reduced with coke (from coal) in a blast furnace, producing hot metal that is converted to steel. High CO₂ emissions.
Direct reduction – electric arc furnace (DRI-EAF): iron ore pellets are reduced in solid state by gas in a shaft furnace, then melted with scrap in an EAF. Lower emissions, especially with clean electricity.
The chemistry (simplified)
- With natural gas (reformed to CO and H₂): Fe₂O₃ + CO → Fe + CO₂ and Fe₂O₃ + H₂ → Fe + H₂O
- With hydrogen only: Fe₂O₃ + 3H₂ → 2Fe + 3H₂O
Using hydrogen replaces CO₂ with water vapour.
Requirements for low-carbon hydrogen DRI
- Green or low-carbon hydrogen — from electrolysis using renewable power
- Low-carbon electricity for EAFs
- DR-grade iron ore pellets with high iron content
- Adapted shaft furnaces and gas systems
Saudi relevance
- Saudi steelmaking is already built on gas-based DRI-EAF (steel industry overview)
- Abundant solar and wind resources support future green hydrogen
- New capacity, such as the Ras Al-Khair complex that includes planned DRI capacity, can be designed with future hydrogen use in mind
- Export markets increasingly value lower emissions (EU CBAM)
What it means for buyers
For now, the most practical steps are to request emissions data and EPDs and to reduce tonnage through efficient design (green steel and low-carbon construction).
The steel itself performs the same whatever the production route — grade and standard still govern specification.