Nippon Steel produces iron using only hydrogen in Japan trial

A pilot furnace operated by Japan's Nippon Steel (TYO: 5401) has turned out over 1,000 tonnes of DRI, or direct reduced iron, using nothing but hydrogen to reduce the ore, the steelmaker announced on November 4. Operating continuously for more than 300 hours, the campaign relied on lower-grade pellets designed for blast furnaces rather than the high-grade feedstock that direct reduction facilities usually require.

Commercial reduction furnaces worldwide produce about 100mn tonnes of DRI a year. They run on natural gas, which emits CO2, so switching to hydrogen would cut emissions from ironmaking. Showing that the process works with cheaper ore also matters, because high-quality ore is in short supply while lower grades are plentiful.

The steelmaker had to overcome two engineering problems. Reduction using hydrogen alone absorbs heat, so the temperature inside the furnace tends to fall. Nippon Steel kept the reaction stable with a thermal compensation technique. Low-grade ore also tends to crumble into powder as it is reduced, which restricts gas flow through the furnace and makes the reaction harder to control. The company said it developed operating methods that limit this powdering.

The trial took place at the Hasaki Research & Development Center. The shaft furnace there stands roughly 60m tall, can produce one tonne per hour and began operating in March 2026.

The project falls under the "Nippon Steel Carbon Neutral Vision 2050," which covers three state-backed technologies. The other two are "High-grade steel production in large-scale electric arc furnaces (EAFs)," and "Hydrogen reduction in blast furnaces (BFs)."

Nippon Steel plans further tests at the pilot furnace to refine its operating conditions. It will begin work on scale-up technology from fiscal 2027 and aims to have the process ready for commercial use around 2040.

In January 2022, NEDO, Japan's New Energy and Industrial Technology Development Organization, selected the programme for its Green Innovation Fund, and in November 2023 the agency signed off on extra money. Three partners share responsibility for the strand that uses only hydrogen for reduction: JRCM, the Japan Research and Development Center for Metals, along with JFE Steel Corporation and Nippon Steel.