The Institute for Energy Economics and Financial Analysis (IEEFA) has stated that the MENA region has the potential to become the leader in the global transition to green iron and steel with its significant competitive advantages bolstered by major projects in renewables, green hydrogen and steel. MENA’s advantages, such as gas-based direct reduced iron (DRI) production, access to feedstocks such as DR-grade pellets and fossil gas, as well as cheap renewable energy, and growing investments in green hydrogen, make it a prime contender in the global green transition, IEEFA said.
According to the statement, the MENA region’s DRI capacity, which has lower emissions than traditional coal-based processes, is growing; in 2023, it accounted for 45 percent of global DRI production. While other regions see access to high-grade feedstocks as a barrier to decarbonizing via DRI-EAF, MENA will grow availability of iron ore concentrate and pellets further as a result of Brazilian steelmaker Vale’s expansion plans.
The region’s established infrastructure, combined with growing investment in low-emissions technologies, will provide a significant competitive advantage in the evolving green steel market. IEEFA stated that the region can seize this opportunity to supply green iron and steel to key markets such as Europe and Asia by taking the right steps now.