Investigating the merits of co-locating renewable energy with steel production to decarbonise the iron industry-Codes

Scaling up renewable hydrogen for directly reduced iron (DRI-H) with Electric Arc Furnace (EAF) may introduce significant resource demands, especially when considered with the global trade of iron ore. We modelled scenarios in which 1,468 Mt of iron ore – the total global export volume in 2021 – is processed using DRI-H and EAF technologies. Supplying renewable hydrogen via imported ammonia to existing steel making facilities requires 35.42 EJ (range: 27.52-46.91 EJ) of solar energy, 135,882 km² (77,719-279,967 km²) of land use, and 5,768 GL (3269-8,545 GL) of water. By contrast, co-locating DRI-H facilities with solar PV farms – thereby avoiding the need to transport iron ore and other feedstocks globally – saves 50% in energy, 50% in land use, and 39% in water demand. This analysis illustrates the importance of aligning industrial decarbonisation with spatial planning and infrastructure development, and co-location may provide an opportunity for reducing environmental impacts of global supply chains.