Sustainable Steel from Australia and Germany

Limits of conventional direct reduction 

Direct reduction technology in shaft furnaces using green hydrogen to produce green steel is considered a promising way to decarbonize the industry. However, this process requires high-quality, processed ores and large quantities of green hydrogen, which poses considerable economic and logistical challenges for German steel manufacturers. 

Technology for a climate-resilient industry 

The SuSteelAG project is testing an alternative process route: hydrogen-based direct reduction in a rotary kiln. This novel technology enables the use of low-grade iron ores while significantly reducing the processing effort. The process thus opens up additional economic and ecological potentials – especially for a more decentralized and flexible steel production using green hydrogen. Fraunhofer IST is contributing its expertise in life cycle engineering and life cycle costing to holistically assess and optimize the sustainability and economic performance of this process. The assessment covers the entire value chain – from raw material extraction in Australia to further processing in Germany – and forms the basis for an intelligent bilateral raw material management.

Achieving climate targets, securing competitiveness 

The innovative process technology developed does not only enable German steel producers to exploit saving potentials and thus long-term competitive advantages, but also contributes to the achievement of individual climate targets through emission reductions. In addition, SuSteelAG is creating a strong partner network between Germany and Australia – a strategic basis for future cooperation, innovation, and the transfer of knowledge.