Green Steel in Mining and Construction: DRI, Hydrogen Costs, and the Race for Low Carbon Iron Ore

Green steel is emerging as a key pathway for cutting emissions from the construction and mining sectors. Steel production accounts for about 8% of global CO2 emissions, and the shift from coal based blast furnaces to direct reduced iron (DRI) powered by natural gas or hydrogen is central to decarbonization. However, the high cost of clean hydrogen and the need for high grade iron ore pellets remain major hurdles. Junior miners are positioning themselves to supply the feedstocks needed for low carbon steel. Hawsons Iron in Australia is targeting a magnetite concentrate above 69% iron with low impurities, while High Tide Resources in Canada's Labrador Trough is advancing high purity concentrates for DRI. Both companies highlight that access to low cost renewable power, like hydroelectricity, is a competitive advantage. Policy support from the EU and China, along with standards from organizations like Responsible Steel, are beginning to shape the market. But the article notes that customers want carbon neutral products without paying a premium, so cost reduction in hydrogen and electricity is essential. The transition will be gradual, and the availability of high quality iron ore will determine how quickly DRI can scale.