Steelmakers in the Middle East and North Africa (MENA) are poised to lead the global shift to green iron and steel production, according to the Institute of Energy Economics and Financial Analysis (IEEFA). Advances in technology that blend green hydrogen with natural gas can convert existing direct reduced iron-electric arc furnace (DRI-EAF) plants into low-emissions facilities without significant costs.
IEEFA highlights that this hybrid approach positions MENA well, particularly as Europe demands genuine low-emissions steel. Global DRI capacity is projected to reach 175 mln tons per year by 2030, with the EU and MENA contributing 20 mln and 69 mln tons, respectively. By 2050, global DRI demand is expected to reach 320 mln tons, with MENA exporting 35-40 mln tons annually.
Several MENA projects reflect this momentum towards low-emissions steel:
– Turkey’s Tosyali, in partnership with Libya United Steel Company, will build the world’s largest DRI facility, with a capacity of 8.1 mln tons per year.
– Tosyali is also set to collaborate with Saudi Arabia’s National Industrial Development Center (NIDC) on a 4 mln tons per year flat steel plant in Ras Al-Khair using Midrex Flex DRI technology.
– Libyan Iron and Steel Company (LISCO) has signed an MoU with Danieli to produce 2 mln tons of DRI/HBI annually for domestic and export markets. Danieli also proposed a USD 4 bln integrated steel mill in Egypt featuring DRI and hydrogen facilities for the EU market.
– In Mauritania, CWP Global will use its 30 GW AMAN project to produce green HBI for Europe, in partnership with SNIM, Mauritania’s largest iron ore producer.
– China’s Baosteel has increased its investment in the BAP Al-Khair Steel Company, a joint venture with Saudi Arabia’s PIF and Aramco, to produce low-emission thick plates using DRI-EAF technology.
– Vale has partnered to build a 12 mln tons per year iron ore concentrate plant in Oman by 2027 to support its regional pelletizing operations.
IEEFA urges MENA steelmakers to leverage these advancements and existing facilities to lead the green steel market by reducing emissions and aligning with international standards.
The Institute for Energy Economics and Financial Analysis (IEEFA) is an international think tank focused on energy markets, trends, and policies.
