Feasibility of Green Hydrogen Use in Natural Gas DRI Furnaces: A Technical and Economic Review

Nikit Abhyankar*, Jose Dominguez, Amol Phadke

* Corresponding author – email

Working Paper

This paper examines the technical feasibility and economic viability of converting natural gas-based direct reduced iron (DRI) furnaces to use green hydrogen. Existing NG-DRI furnaces can be adapted with specific modifications: augmented process gas compressors (bottlenecks beyond ~30% H₂), revised heat recovery systems for hydrogen’s endothermic reduction profile, enlarged cooling circuits (requiring 50-70% higher flow rates), recalibrated instrumentation, and enhanced safety systems to prevent hydrogen embrittlement. Technical challenges include maintaining thermal balance, handling increased water vapor production, and addressing lower carbon content in hydrogen-reduced DRI (0-1% vs. 1.5-4% in NG-DRI), which affects downstream EAF operations. Despite these challenges, the hydrogen process offers comparable metallization rates with faster reduction kinetics.

Economic barriers remain significant: green hydrogen at $4-6/kg makes H₂-DRI steel approximately $200/ton costlier than conventional routes. However, if hydrogen cost falls to $3/kg or below, as evidenced by India’s recent green ammonia auctions, green steel becomes competitive.

Numerous projects demonstrate growing momentum globally, including China’s HBIS (60% H₂), Emirates Steel’s UAE demonstration, and large-scale developments in Sweden (HYBRIT, H₂ Green Steel), ArcelorMittal’s European initiatives, and Middle East ventures. These projects account for 14 MT/yr capacity and span pilot to commercial-scale facilities (1-6 Mt/year), backed by government investment and corporate offtakes.
DOWNLOAD REPORT
Sign up for Updates

© Copyright 2023 University of California, Berkeley

Download Report