MENA’s opportunity to lead the green iron and steel transition

The Middle East and North Africa (MENA) region has the opportunity to lead global industry’s transition to green iron and steel. As the global iron and steel industry races to decarbonise its production, MENA enjoys significant competitive advantages, bolstered by major projects announced in renewables, green hydrogen, and iron and steel. 

MENA has one of the world’s fastest growing steel industries and is the leading hub for gas-based production of DRI. Steelmaking from DRI using electric arc furnaces has lower emissions than traditional coal-based processes. It also offers the flexibility to transition from fossil gas to green hydrogen, enabling even greater emissions cuts.

MENA’s DRI capacity is growing; in 2023, it accounted for 45% of global DRI production, up 11% from 2021. The region also enjoys a number of advantages that support this growth. While other regions see access to high-grade feedstocks as a barrier to decarbonising via DRI-EAF, MENA enjoys reliable availability of iron ore concentrate and pellets. This availability will grow further as a result of Vale’s expansion plans.

In addition, MENA is one of the world’s fastest-growing renewable energy markets and holds records for some of the cheapest renewable energy, supported by its unique solar and wind potential. As a result, the region is emerging as a leading green hydrogen hub, with deployment of green hydrogen in steelmaking already underway.

MENA's established infrastructure, combined with growing investment in low-emissions technologies, will provide a significant competitive advantage in the evolving green steel market. By taking the right steps now, the region can seize this once-in-a-generation opportunity to supply green iron and steel to key markets such as Europe and Asia.