The Middle East and North Africa (MENA) region has the potential to lead the global green steel market, according to the Institute for Energy Economics and Financial Analysis (IEEFA). Steel producers in MENA can leverage their existing direct reduced iron (DRI) technology, which significantly reduces carbon emissions compared to traditional methods. Projections indicate that global DRI capacity could reach 175 million tonnes annually by 2030, with MENA contributing approximately 69 million tonnes.
To enhance their competitive edge, MENA steelmakers must integrate renewable energy into their operations and transition from natural gas to hydrogen in their DRI plants. Recent projects, such as the collaboration between Turkish steelmaker Tosyali and the Libya United Steel Company to build the world's largest DRI facility, highlight the region's commitment to low-emission production.
As international regulations tighten on carbon emissions, MENA's ability to produce green iron and steel will be crucial. The region's abundant renewable resources, particularly solar energy, present a significant opportunity for sustainable growth in the steel sector while meeting rising demand in markets like Europe.
