Middle East and North Africa could lead on green steel
The region's plentiful solar resources are ideal for green hydrogen, says the Institute for Energy Economics and Financial Analysis, US.
Excellent solar resources could produce cheap green hydrogen in the Middle East and North Africa (MENA) region, says the Institute for Energy Economics and Financial Analysis (IEFA), but exports look inefficient and expensive.
MENA must act quickly and decisively to capitalise on truly green steel and the newly emerging green iron trade, outlines the report. It warns of growing competition from iron ore mining nations including Australia, Brazil and Canada.
'Rather than trying to find a viable way to export green hydrogen, which looks inefficient and expensive to transport, the region should prioritise domestic use such as in its DRI plants.
'Steelmakers around the world are already transitioning from blast furnace-based production towards DRI technology that can run on green hydrogen. MENA has an advantage given its steel sector is already based on DRI, with established access to both direct reduction-grade (DR-grade) iron ore and the renewable energy resources that will allow it to produce cheap green hydrogen in the near future – or the green iron it can make from them,' reflects Simon Nicholas, IEFA lead steel analyst and report co-author.