SA’s green steelmaking ‘a matter of utmost urgency’

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SA must accelerate its programme to produce decarbonised steel if it is to take advantage of Europe’s scramble to be carbon neutral, according to an industry expert.

Speaking at a workshop hosted by the Trade and Industrial Policy Strategies (TIPS) and the Leadership Group for Industry Transition (LeadIT), in Johannesburg on Tuesday, Hilton Trollip said Hydrogen Direct Reduced Iron (H-DRI) — which is produced using green hydrogen instead of natural gas — is almost certain to be a central component of steelmaking, alongside recycling.

The energy-intensive, high carbon-emitting steel sector is a major contributor to global warming and climate change, making it a prime contender for countries to reconfigure to reduce the carbon footprint of the industry.

“H-DRI is going to be a major international commodity and SA is one of three places in the world where this commodity can be made at least cost,” said Trollip. “We can export hydrogen in various forms and one of the most important forms is in [green] iron.”

SA is among the 10 biggest producers of iron ore, while Europe has stringent targets for transitioning to renewable energy by 2030, and producers of renewable energy are scrambling to secure the requisite materials to increase production in line with their governments’ commitments.

“The main shortage Europe is facing is that if it looks at its H-DRI commitments, to achieve that they are going to need piles of green energy which we have got in abundance here,” Trollip said. “They have stated they are going to be importing green hydrogen and green electricity.”

Sasol and ArcelorMittal SA (Amsa) have announced they will develop carbon-capture technology to produce sustainable fuels and chemicals, as well as steel using green hydrogen and derivatives by 2030.

Among their planned projects is the Saldanha green hydrogen and derivatives study, which will explore the region’s potential as an export hub for green hydrogen and derivatives, as well as green steel production.

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