A breakthrough in Namibia is allowing steel production without carbon emissions—even when using lower-quality iron ore than what’s typically needed. This advancement means that sources of iron ore once considered unsuitable can now be used for sustainable steel manufacturing.
Central to this development is the hydrogen rotary kiln, a large, electrically powered furnace that uses hydrogen gas instead of coal to process the ore. This method transforms iron ore into direct-reduced iron (DRI) without releasing carbon dioxide. DRI is made by stripping oxygen from the ore with hydrogen, resulting in a cleaner form of iron ideal for making steel. In a recent pilot project, 80 tonnes of Australian iron ore—with only about 56% iron content compared to the usual 70%—were converted into DRI without the need for energy-intensive pelletising. By swapping coal for hydrogen, this technology can cut CO₂ emissions by up to 90%, marking major progress towards global climate targets.
This achievement is the product of a collaboration between companies in Australia and Germany through the SuSteelAG consortium, which aims to create a sustainable value chain linking the two countries with Namibia. The project harnesses Namibia’s vast solar power resources to run these processes, paving the way for green steel to become part of everyday products like cars and appliances, bringing environmental benefits to consumers around the world.
Last year, led by the Federal Institute for Materials Research and Testing (BAM), SuSteelAG started decarbonising steel production using hydrogen—even with ores previously regarded as unfit for green steel. Now, the first industrial-scale pilot has successfully produced DRI from low-grade ore with no carbon emissions, demonstrating that this approach is both practical and scalable.
Since the steel industry currently accounts for roughly 7% of worldwide CO₂ emissions, transforming how steel is made is crucial for addressing climate change. Replacing coal with hydrogen in processes like this could drastically shrink the industry’s carbon footprint.
BAM leads the development of hydrogen-based direct reduction, now capable of utilising lower-grade ores for eco-friendly steel. This widens the pool of usable materials, making green steel more accessible and affordable.
Until now, producing climate-neutral steel required high-grade ores with about 70% iron, but these are rare and costly and need energy-intensive preparation. The new hydrogen rotary kiln avoids the need for pelletising, saving energy and cost while tapping into ore reserves that were previously unused.
Thanks to HyIron Green Technologies’ hydrogen rotary kiln at Namibia’s Oshivela site, untreated Australian iron ore with just 56% iron content has been turned into DRI at an industrial scale for the first time. This illustrates how innovative technology can unlock resources once considered too low-grade for sustainable steelmaking.
The campaign used 80 tonnes of iron ore supplied by Fortescue, an Australian partner in SuSteelAG, underscoring the project’s international scope. TS Elino GmbH, a German furnace manufacturer, designed the hydrogen rotary kiln to ensure it could scale up for industry use.
Ahead of the pilot, BAM conducted thorough lab research on hydrogen-based reduction to establish optimal conditions for large-scale production. Using these findings, the Oshivela plant processed Australian ore under climate-neutral conditions, running at five tonnes per hour—a significant step for industrial adoption.
“We have now reached a scale that matters for industrial operations and proven that hydrogen-based direct reduction of lower-grade ores can work economically—an essential milestone for ramping up green steel production in Germany and beyond. This also shows that green steel isn’t limited by a shortage of premium ores,” said Christian Adam of BAM, coordinator of SuSteelAG.
The next phase will see the refined iron shipped from Namibia to Germany, where Salzgitter Mannesmann Forschung GmbH will test its use in existing steelmaking processes to produce climate-friendly steel for cars and other vital goods.
Researchers at RWTH Aachen University (AMR group) will continue efforts to further improve the efficiency of direct reduction using lower-grade Australian ores, supporting ongoing progress in green steel production.
Besides the already mentioned organisations, the SuSteelAG consortium features partners such as HyIron GmbH, Fraunhofer IST, Fraunhofer IKTS, Heidelberg Manufacturing Deutschland GmbH, and Hansaport, reflecting the initiative’s wide-ranging and international character.
Funding of €4.5 million from the German Federal Ministry of Research, Technology and Space’s Energy Research Programme bolsters the consortium’s work, showing strong policy support for climate-friendly innovation. The hydrogen rotary kiln at HyIron Green Technologies also benefited from backing by the German Federal Ministry for Economic Affairs and Energy, highlighting the role of public-private cooperation in advancing sustainable industries.