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IEEFA: MENA Capable of Leading Green Iron and Steel Transition
03/05/2025 - The Middle East and North Africa (MENA) region has the potential to lead the global industry’s transition to green iron and steel, announced the Institute for Energy Economics and Financial Analysis (IEEFA).
“MENA has one of the world’s fastest-growing steel industries and is the leading hub for gas-based production of direct reduced iron (DRI),” said Soroush Basirat, energy finance analyst, global steel at IEEFA.
According to a press release, MENA’s DRI capacity grew 11% from 2021 to 2023, accounting for 45% of global DRI production. The region also has advantages such as reliable feedstocks including DR-grade pellets and fossil gas.
Availability of iron ore concentrate and agglomerate is estimated to increase due to Vale’s plans to expand its capacity in the MENA region. Libya also announced plans for a DRI complex in the Benghazi region.
“[MENA’s] established infrastructure, combined with growing investment in low-emissions technologies, will provide a significant competitive advantage in the evolving green steel market,” said Basirat.
IEEFA said that MENA is also one of the world’s fastest-growing renewable energy markets in the world. Holding records for some of the cheapest renewable energy due to its solar and wind potential, the region has already begun to use green hydrogen steelmaking.
“By taking the right steps now, the region can seize this once-in-a-generation opportunity to supply green iron and steel to key markets such as Europe and Asia,” said Basirat.
According to a press release, MENA’s DRI capacity grew 11% from 2021 to 2023, accounting for 45% of global DRI production. The region also has advantages such as reliable feedstocks including DR-grade pellets and fossil gas.
Availability of iron ore concentrate and agglomerate is estimated to increase due to Vale’s plans to expand its capacity in the MENA region. Libya also announced plans for a DRI complex in the Benghazi region.
“[MENA’s] established infrastructure, combined with growing investment in low-emissions technologies, will provide a significant competitive advantage in the evolving green steel market,” said Basirat.
IEEFA said that MENA is also one of the world’s fastest-growing renewable energy markets in the world. Holding records for some of the cheapest renewable energy due to its solar and wind potential, the region has already begun to use green hydrogen steelmaking.
“By taking the right steps now, the region can seize this once-in-a-generation opportunity to supply green iron and steel to key markets such as Europe and Asia,” said Basirat.
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