Could a long overlooked ironmaking process be revived in global decarbonisation push?

Direct electrolysis of iron ore could play a niche role in green iron production as part of global decarbonisation efforts, according to a new briefing by the Institute for Energy Economics and Financial Analysis (IEEFA). This method, which uses lower-grade iron ores and requires less infrastructure, could be particularly effective in low-temperature processes powered by intermittent renewable electricity.

While the energy consumption of electrochemical processes is comparable to conventional ironmaking, the scale of clean electricity needed presents a significant hurdle for widespread adoption. The technology's commercial viability hinges on the availability of low-cost, reliable clean electricity. While mature and widely used in other metal production, electrochemical technologies have only recently gained attention in the steel sector.

Direct iron electrolysis shows promise over other methods, as it can work with lower-grade ores and is more compatible with intermittent renewable energy sources. However, significant technical and commercial challenges remain before the technology can be deployed at scale. Companies like Boston Metal, Electra, and Volteron are exploring direct iron electrolysis at pilot plants, while Fortescue and Element Zero are pursuing variations in Australia.

Despite these advancements, electrolysis is still in its infancy, with production limited to a few tonnes per day. To compete with established technologies like hydrogen-based direct reduced iron (H2–DRI), the technology must be scaled up significantly. Nevertheless, the unique advantages of electrochemical ironmaking, such as using lower-grade ores and less energy-intensive infrastructure, could establish it as a niche player in smaller-scale green iron production.