Ansteel Completes Hydrogen-Based DRI Pilot Project for Green Steel Production

Chinese steelmaker Anshan Iron & Steel Group (Ansteel) has completed the commissioning of a pilot line for hydrogen-based DRI production at its Bayuquan plant. This project marks a significant milestone in China’s push toward green steel and decarbonized metallurgy. The plant achieved a metallization rate of 95% using renewable energy and green hydrogen, completely bypassing carbon-heavy processes like coking and sintering.

Hydrogen-Based DRI Production Signals a Shift in China’s Steel Industry

The hydrogen-based DRI pilot line has an annual capacity of 10,000 tons. Ansteel reports that the system operates across the full production cycle—from hydrogen generation to green iron output. The company emphasizes that this shift from carbon to hydrogen metallurgy enables cleaner production, significantly reducing emissions across the steel value chain.

Importantly, the DRI produced shows low impurity levels. This makes it suitable for high-performance applications, including electric vehicle steel. Ansteel plans to scale up its efforts with a 500,000-ton-per-year industrial demonstration project, which would complete a green steel ecosystem from hydrogen to final product. The move positions Ansteel as a frontrunner in the global race for low-emission steel production.

Ansteel’s Green Steel Push Aligns with Global Hydrogen Trends

As global demand for green steel grows, Ansteel’s hydrogen-based DRI project reflects China’s evolving stance on industrial decarbonization. The success of the pilot comes amid broader industry momentum. For example, Tosyali SULB, a joint venture in the Middle East, recently initiated plans for its own DRI complex using Midrex technology and SMS Group support.

Meanwhile, hydrogen-based DRI projects are gaining traction globally as countries seek to align steelmaking with net-zero targets. Ansteel’s advancement strengthens China’s strategic position in this shift. The pilot project also serves as a testbed for expanding hydrogen technology across the broader industrial landscape.

SuperMetalPrice Commentary:

Ansteel’s successful commissioning of a hydrogen-based DRI pilot line represents a major inflection point in green metallurgy. With a 95% metallization rate and scalable potential, this initiative could shape the future of steel decarbonization not just in China but worldwide. As industrial players intensify hydrogen investments, Ansteel’s early move sets a competitive precedent. Watch closely as the 500,000-ton expansion unfolds—it may define new benchmarks in green steel production.