Strict feedstock purity and pelletizing requirements challenge shaft-furnace, hydrogen-based direct reduction of iron (H 2 DRI) with electric arc furnace (EAF) steelmaking. Fluidized-bed (FB) reactors eliminate pellet use by reducing fine ore; however, high DRI metallization risks reactor de-fluidization. The novel electric smelting furnace-basic oxygen furnace (ESF-BOF) configuration enables splitting iron reduction between FB and ESF to prevent de-fluidization. This study compares FBH 2 DRI-EAF vs. FBH 2 DRI-ESF-BOF, investigating the impact of ore grade and DRI metallization on levelized cost of steel (LCOS) and GHG emissions. Despite lower feedstock cost, processing low-grade ore via FBH 2 DRI-EAF raises LCOS by 16 %. Conversely, FBH 2 DRI-ESF-BOF leverages lower feedstock costs effectively. As global ore purity decreases, this advantage grows increasingly relevant. Elevated GHG penalties have limited economic impact, but affordable green reductant supply is essential for cost minimization. At 1.5 €/kgH 2 and 80 €/tCO 2 e penalty (best case), the LCOS varies from 565 €/tLS to 578 €/tLS depending on DRI metallization. • We investigate the promising H 2 DRI-ESF-BOF pathway to convert abundant, low-grade iron ores into green steel. • H 2 DRI-ESF-BOF delivers 16% lower levelized cost than H 2 DRI-EAF when processing low-grade iron ore. • Low-grade iron ore impurities significantly increase furnace volume, flux demand, energy use and Fe loss in EAF compared with ESF. • Fine ore reduction can be flexibly split between H 2 DRI and ESF to prevent particle sticking and reactor de-fluidization at high DRI metallization. • The impact of hydrogen cost on H 2 DRI-ESF-BOF economics is much higher than that of GHG emission penalties.
Margutti et al. (Fri,) studied this question.