Ferrexpo, a major iron ore producer, believes that the application of green hydrogen for the production of Direct Reduced Iron (DRI) could revolutionize the steel industry. The company has already made initial investments to explore the potential of hydrogen usage in its production processes.
According to Nick Bias, the Group Head of Investor Relations and Corporate Communications at Ferrexpo, the company has made some initial investments to understand the opportunities that hydrogen usage can offer in the production process. However, Bias acknowledged certain risks associated with hydrogen investments during the ongoing war in Ukraine.
As reported earlier by GMK Center, Ferrexpo is considering the installation of a pilot 3.2 MW electrolyzer as part of its ambitious decarbonization plan, which was first announced in the company's Responsible Business Report 2021.Ferrexpo's belief in the transformative potential of green hydrogen for the steel industry comes at a time when the industry is actively exploring decarbonization pathways. The use of hydrogen in the production of DRI as feedstock for electric-arc furnaces is seen as a key strategy for reducing carbon emissions in steelmaking.
Despite the challenges, such as a potential shortage of high-grade iron ore and the large-scale implementation of cost-effective hydrogen-based DRI technology, Ferrexpo remains optimistic about the future of green hydrogen in the steel industry.
