Process and current status
The present Iron and Steel BREF has been adopted in 2012 and does not include the more recent and cleaner production routes. The reference plant information dates back to pre-2007, meaning it is outdated by at least 18 years.
Its review is foreseen to start in 2026, despite its reviewed version overdue to be published by 2020 if complying with the 8 years review cycle mandate of the Industrial and Livestock Rearing Emissions Directive (IED 2.0).
The EEB believes there is a solid case to start the review of the IS BREF as soon as possible, see input made at the 19th IED Forum in April 2024 on the EU BREF Workprogramme.
Main Environmental issues and discussion points on BAT / BATAE(P)Ls
The production of iron and steel accounts for about 5% of the total EU CO2 emissions. It is also a major source of harmful pollutants to both human health and the environment such as nitrogen oxides, sulphur dioxide, particulate matter, volatile organic compounds and heavy metals. The extraction of coal is a major source of methane emissions.
Steelmaking is very energy and raw material-intensive. Presently, it is mainly produced in two ways:
- Blast Furnaces-Basic Oxygen Furnaces (BF-BOFs) produce virgin steel coming from iron-ore. This production route requires coal to provide carbon (reducing agent) and to generate the needed high temperatures. It also requires a certain amount (10-20%) of steel scrap.
- Electric Arc Furnaces (EAFs) produce recycled steel coming entirely from scrap. This production route is ways less energy and material intensive than BF-BOFs but relies on the quality of scrap to deliver high quality steel. Its carbon intensity depends on the electricity mix.
Cleaner production routes for the iron ore route are on the verge of becoming commercially available and have the potential to substitute blast furnaces by using hydrogen as reducing agent instead of coal (Direct Reduced Iron, DRI) or by directly electrifying the entire process (Molten Oxide Electrolysis, MOE). Both production modes require copious amount of electricity either to produce hydrogen or to convert iron ore into liquid metal.
EU steel industry players are committed to achieve climate neutrality by latest 2050, with some indicating to deliver GHG emission reduction significantly by latest 2030. The iron ore route process shift due to climate protection ambition will mean that downstream pollution (mainly air emissions) from other pollution intensive processes such as sintering and coke ovens will be avoided.
The main suggestions by the EEB for the future BAT conclusions are hence the following:
- To establish an ambitious decommissioning plan for the BF-BOF route , as well as mandating the electrification of downstream activities (e.g. hot rolling and other ferrous metals processing) so to substitute use of coke oven gas and natural gas.
- Develop a new section on renewable H2-DRI, considering potential cross media effects such as water consumption, NOx emissions and energy consumption. Safety risks will also be paramount as well as noise mitigation.
- Dedicated BAT on other iron ore routes such as the MOE process.
- For the EAF scrap route, the following improvement potentials are identified:
- Improving the specific energy consumption and phase out of fossil fuel share
- Improving the GHG pollution prevention levels (below 215kg CO2eq.to steel), also by switch to 100% renewable electricity input share;
- Stricter BAT-AELs for mercury (<10µg/Nm³), a dust level <5mg/Nm³ (daily average) for primary and secondary dedusting operations;
- Switch to renewables based reducing agents and reducing the wear-off and pollution impacts from anodes consumption.
- For all routes, aspects such as preventing negative impacts from water consumption and emissions, circular (re)use of waste/residues (notably slags) providing further co-benefits in other sectors (e.g. cement industry) will also be paramount.
How can you make a difference?
The EEB would wish to kick start the review of the outdated I&S BREF as soon as possible, the main focus should be on the novel H2-DRI-EAF and MoE iron ore process route. The following information would thus be appreciated:
- data on demonstration plants / commercially operating plants (anywhere in the world) demonstrating best pollution prevention (incl. GHG emissions) performance from alternative iron ore production route i.e. H2-DRI and MOE production route. We are aware of the following DRI projects using hydrogen:
- Stegra (Sweden): 100% renewable hydrogen DRI, commercial operation from 2026, 5Mt steel production by 2030.
- Hybrit (Sweden), 100% renewable hydrogen DRI, demonstration of DR in 2028 and about to reach commercial scale.
HBIS (China) is producing DRI using more than 60% hydrogen in the feed gas mix on industrial basis. The hydrogen comes from coke oven gas; the plant can ramp up to use 100% renewable hydrogen.
- Thyssenkrupp tkH2steek project (Germany), hydrogen-based DR with smelter, operations scheduled to start in 2027 at first with natural gas to then ramp up renewable hydrogen.
- SHS Power4Steel project (Germany), hydrogen-based DRI, operations to start in 2027 according to the State aid decision published by the European Commission (full capacity in 2029), at first with natural gas to then ramp up renewable hydrogen.
- BLASTR Green Steel (Finland): 100% renewable hydrogen DRI, ramp-up of the integrated value chain to full capacity during 2028-2030.
- best performer emissions / resource consumption data from non-fossil based DRI plants (e.g. MIDREX, Danieli)
Currently two companies lead the market of hydrogen-ready DRI furnaces: Tenova-Danieli and Midrex. The first is working in the Hybrit project, while the second is involved in the Stegra, BLASTR, tkH2Steel and SHS projects.
“MIDREX Flex” technology provides the flexibility to operate on different ratios of natural gas and hydrogen, up to 100% H2, providing also a specifically design for 100% H2 production (MidrexH2). The ENERGIRON technology by Tenova-Danieli allows for the same flexibility.
- best practice information on decommissioning of Blast Furnaces
- useful information on ‘deep industrial transformation’ commitments put in practice by frontrunner operators, such as within installation level Transformation Plans (to be ) developed under the framework of Article 27e of the IED, this could relate to fossil feedstock substitution plans, process electrification action plan, closure actions for BF-BoF, scale of investment by companies disclosed, interim progress indicators set.
The EEB is partner of the EFFSN network. Please see wider positions made on the EU Steel transition:
Briefing: EEB Steel Action plan (February 2025)
Publication: EFFSN The state of European steel transition (March 2025)