The brief

Analyst view

• State-owned enterprise owned by the Chinese Central Government.
• Produced 120 million tonnes of steel by end of 2021, ranking first globally.
• Zhanjiang facility produces direct reduced iron from Australian ore using hydrogen, reducing emissions by 50-80% versus blast furnaces.

Technical approach

As reported

Hydrogen

Replaces coke in reduction

Hydrogen gas reduces iron oxide to metallic iron, producing only water; zero CO2 emissions.

Ore Flexibility

Mid-grade Australian ore

Accepts Pilbara ore pellets, expanding usable ore sources and reducing dependence on high-grade ore.

Electric Smelting

DRI to steel conversion

Direct reduced iron melted in electric furnaces powered by renewables achieves near-zero-carbon steel.

Scale

One million tonne capacity

Zhanjiang furnace operates at industrial scale, proving viability for commercial deployment.

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