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Nippon Steel Produces Over 1,000 Tonnes of Hydrogen-Based DRI Using Lower-Grade Iron Ore
Nippon Steel has successfully produced more than 1,000 tonnes of direct reduced iron using 100% hydrogen and lower-grade iron ore at its Hasaki pilot facility in Japan. The achievement marks progress toward commercial-scale hydrogen steelmaking, although significant technical and economic challenges remain.
Key Points
- Pilot production: More than 1,000 tonnes of DRI produced using 100% hydrogen.
- Continuous operation: A test run exceeding 300 hours at the Hasaki research facility.
- Iron ore: Lower-grade blast furnace pellets used instead of conventional high-grade DRI pellets.
- Technical achievement: Improved temperature control and reduced ore powdering during processing.
- Development timeline: Further scale-up work planned from fiscal 2027, targeting implementation technology around 2040.
SEATTLE (Scrap Monster): Nippon Steel Corporation has successfully produced more than 1,000 tonnes of direct reduced iron (DRI) using 100% hydrogen and lower-grade iron ore at its Hasaki Research & Development Center in Japan.
The company's pilot-scale shaft furnace, approximately 60 metres tall, achieved more than 300 hours of continuous operation. The facility began operating in March 2026 and has a nominal production capacity of one tonne per hour.
The results demonstrate progress in addressing two major challenges in hydrogen-based ironmaking: maintaining furnace temperatures during hydrogen reduction and preventing lower-grade iron ore from breaking down into powder.
ScrapMonster Edge: Lower-Grade Ore Could Expand Hydrogen Steelmaking's Raw Material Options
Conventional direct reduction technology generally relies on high-grade iron ore with low impurity levels. The availability of suitable ore is limited, creating an additional supply challenge as steelmakers explore hydrogen-based production.
Nippon Steel's ability to process lower-grade blast furnace pellets using hydrogen alone could expand the range of iron ore available for future DRI production.
For electric arc furnace operators, successful commercialization could eventually provide another source of metallic feedstock alongside steel scrap and conventional DRI.
Industry takeaway: This is an important pilot-scale result, not proof of commercial viability. Hydrogen costs, energy requirements, equipment scale and operating economics will determine whether the technology can compete with established ironmaking processes.
Pilot Furnace Overcomes Key Hydrogen Reduction Challenges
Hydrogen-based iron ore reduction differs from conventional natural gas processes because the reaction absorbs heat, making furnace temperature control more difficult.
Lower-grade iron ore also presents processing challenges. The material can break down into fine particles during reduction, restricting gas movement through the furnace and affecting stable operation.
Nippon Steel said it addressed these problems through advanced thermal compensation technology and operating techniques designed to limit ore powdering.
The tests demonstrated stable DRI production using blast furnace-grade pellets and hydrogen as the sole reducing agent.
Development to Advance Toward Larger-Scale Production
Nippon Steel plans to continue testing the technology and optimizing operating conditions at its Hasaki facility.
From fiscal 2027, the company intends to advance development of larger-scale systems, with the goal of establishing implementation technology around 2040.
The research forms part of Nippon Steel's Carbon Neutral Vision 2050 and Japan's government-supported Green Innovation Fund programme.
Hydrogen DRI Offers a Potential Route to Lower-Emission Steel
Replacing fossil-fuel-based reducing agents with hydrogen offers a potential way to reduce carbon dioxide emissions from primary iron production.
However, the environmental benefit depends on how the hydrogen is produced and the energy required throughout the process.
The technology also faces commercial obstacles, including hydrogen availability, production costs and the substantial investment needed for industrial-scale facilities.
Other steelmakers, including JFE Steel, are developing hydrogen-based reduction technologies, while high costs and project-financing challenges continue to affect broader industry deployment.
Courtesy: Gasworld.
Primary source: Nippon Steel Corporation, November 4, 2026.
