Steelmakers Could Boost Efficiency With Coke Oven Gas
A new briefing note details how redirecting industrial gas to DRI production lowers emissions and coal dependency.
Updated on Oct. 29, 2026 in Energy
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The Institute for Energy Economics and Financial Analysis released a briefing note proposing that steelmakers divert coke oven gas from electricity generation toward direct reduced iron (DRI) production. By replacing gas-fired heat with renewable electricity, producers can improve facility output and reduce their carbon footprint.
Why it matters
Steelmaking currently faces challenges from high natural gas prices and a heavy reliance on metallurgical coal. This approach offers a way to improve energy efficiency in a traditionally carbon-intensive industry while lowering overall emissions.
The proposed Duisburg facility requires 2.8 gigawatts of solar capacity to operate effectively. Once functional, the plant is expected to produce 2.5 million tonnes of direct reduced iron annually, cutting its direct emissions by 10%.
The players
Institute for Energy Economics and Financial Analysis
This research organization focuses on issues related to energy markets, trends, and environmental policies.
Thyssenkrupp
This German multinational conglomerate operates in various sectors, including steel production and industrial engineering.
The details
Steel producers commonly burn coke oven gas, a byproduct of coal, to create heat or power. By electrifying these heating processes, manufacturers can repurpose the hydrogen-rich gas as a chemical feedstock for iron production instead of using it as fuel.
Timeline
Since 2020: Direct reduced iron projects have increased globally.
October 29, 2026: The IEEFA published the briefing note on DRI production.
The Big Picture
This report follows a pattern set by the Institute for Energy Economics and Financial Analysis of highlighting inefficient fuel use in heavy industry. The findings shift the industry narrative by demonstrating how site-level upgrades can bypass traditional coal-heavy constraints.
Widespread adoption of this production method could decrease global demand for metallurgical coal. This transition could lead to long-term changes in raw material markets and industrial energy sourcing for manufacturing sectors.
The takeaway
Repurposing industrial byproducts can turn energy waste into a valuable manufacturing resource. Steel companies looking to modernize should consider electrification as a viable pathway to meet emission targets.
Further reading
Learn more about the latest innovations in Energy.
Source note: This article includes information reported by Hellenic Shipping News.
Live Poll
Should steel manufacturers prioritize using coal-based gases to reduce gas dependence during the energy transition?
