Steelmakers - direct reduction
Reduce your natural gas consumption in the direct reduction processes of iron ore. Deploy Blue Capsule for DRI processes that emit even less CO₂ and remain highly competitive through the production of hydrogen.
The steel sector is evolving – so why choose Blue Capsule?
In the steel industry, MIDREX Flex and MIDREX H₂ represent the decarbonised evolution of traditional technology. MIDREX Flex allows the flexible use of hydrogen and natural gas depending on availability and economic constraints, while MIDREX H₂ runs exclusively on hydrogen. These technologies require decarbonised hydrogen sources, creating an opportunity for integration with SMR technologies such as Blue Capsule.
Integrating Blue Capsule with MIDREX H₂ involves supplying steam to 550 MW of SOEC electrolysers, using the entire thermal output of one unit. This configuration produces around 110,000 tonnes of hydrogen per year, sufficient for a MIDREX unit of 2.5 million tonnes of hot metal. For MIDREX Flex, a hybrid configuration can feed 260 MW of SOEC while producing 30 MWe of electricity for process auxiliaries.
Environmental impact and decarbonisation
Replacing blast furnaces with decarbonised MIDREX processes offers considerable emissions reduction potential. In France, replacing the four existing blast furnace units with MIDREX Flex would avoid 14 million tonnes of CO₂ per year, while MIDREX H₂ would avoid 17 million tonnes. These reductions represent a significant contribution to national climate targets.
Using green hydrogen in direct reduction can save nearly 2 tonnes of CO₂ per tonne of steel produced compared with the traditional coal-based route. This environmental performance, combined with the superior metallurgical quality of DRI, positions decarbonised MIDREX processes favourably in the low-carbon steel market.
Economic and regulatory challenges
The economic competitiveness of decarbonised MIDREX processes depends strongly on the evolution of climate policies. The planned end of free carbon allowances in 2035 for the European steel industry, together with rising CO₂ prices, reinforces the economic attractiveness of these technologies. A MIDREX Flex unit could save €720 million per year compared with blast furnaces, at a carbon price of €250/tonne in 2035.
Industrial acceptance also requires secure access to decarbonised hydrogen. Integration with Blue Capsule addresses this need by providing a reliable electricity supply for SOEC—meaning that with Blue Capsule the cost of H₂ is less exposed to fluctuations in the energy market. This security of supply is a major competitive advantage for steelmakers adopting these technologies.
Did you know?
The MIDREX technology is the global benchmark solution for the direct reduction of iron ore, accounting for around 80% of worldwide DRI (Direct Reduced Iron) production by shaft furnace. The MIDREX process uses a reducing gas composed mainly of hydrogen and carbon monoxide to reduce iron ore at temperatures of 800–1050 °C, thus avoiding the full melting required in blast furnaces.
The main reduction reaction is: Fe₂O₃ + 3H₂ → 2Fe + 3H₂O for hydrogen reduction, and Fe₂O₃ + 3CO → 2Fe + 3CO₂ for carbon monoxide reduction.
The traditional natural-gas-based MIDREX process produces the reducing gas by reforming methane according to CH₄ + H₂O → CO + 3H₂, requiring high temperatures and significant energy consumption.
