SuSteelAG Consortium Achieves Industrial Hydrogen-Based Iron Reduction in Namibia
The SuSteelAG consortium has successfully completed its first industrial-scale pilot test for hydrogen-based iron reduction. This achievement marks a significant step in decarbonizing steel production, utilizing lower-grade ores efficiently.
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In April 2026, the SuSteelAG consortium successfully converted 80 tonnes of Australian iron ore into direct-reduced iron (DRI) using a hydrogen rotary kiln at the Oshivela site in Namibia. This pilot test demonstrates the viability of hydrogen-based direct reduction for lower-grade ores, which was previously limited to higher-grade materials due to resource scarcity.
The project, coordinated by BAM, has secured approximately €4.5 million in funding and aims to integrate the refined iron into existing steel production processes in Germany. The success of this pilot could accelerate the transition to green steel, mitigating CO₂ emissions from the steel industry, responsible for about seven percent of global emissions. Potential risks include dependency on hydrogen supply and the need for further optimization of lower-grade ores.
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