DR Pellet Supply Could Decarbonization ‘Choke Point’
11/05/2024 - There are dozens of steel decarbonization technologies in various stages of development, but only one today is of sufficient technological maturity to significantly reduce CO2 reductions – the direct reduction electric arc furnace (DRI-EAF) route.
And that’s a problem, according to Hatch Advisory principal Siddhartha Sengupta.
Speaking during the opening session of the 2024 AIST European Steel Forum, Sengupta told an audience of more than 200 that although the DRI-EAF route is readily deployable, the specialized feedstock creates a pinch point, as it necessitates access to pellets with high iron content and low gangue content.
And based on his firm’s estimates, the world will need an additional 200 million tons of these pellets by 2040. Although there are 130 million tons’ worth of projects in the pipeline, the risk is that CO2 reduction targets are moved forward.
“What the data is telling us is that DR pellets will become the choke point for the decarbonization of the steel industry,” he said.
The AIST European Steel Forum is taking place in Essen, Germany, this year. Check back with AIST Steel News for updates.
Speaking during the opening session of the 2024 AIST European Steel Forum, Sengupta told an audience of more than 200 that although the DRI-EAF route is readily deployable, the specialized feedstock creates a pinch point, as it necessitates access to pellets with high iron content and low gangue content.
And based on his firm’s estimates, the world will need an additional 200 million tons of these pellets by 2040. Although there are 130 million tons’ worth of projects in the pipeline, the risk is that CO2 reduction targets are moved forward.
“What the data is telling us is that DR pellets will become the choke point for the decarbonization of the steel industry,” he said.
The AIST European Steel Forum is taking place in Essen, Germany, this year. Check back with AIST Steel News for updates.
