Uneven renewable energy supply constrains the decarbonization effects of excessively deployed hydrogen-based DRI technology

Yihan Wang, Chen Chen, Yuan Tao () and Zongguo Wen ()
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Yihan Wang: The University of Hong Kong
Chen Chen: The University of Hong Kong
Yuan Tao: Renmin University of China
Zongguo Wen: Tsinghua University

Nature Communications, 2025, vol. 16, issue 1, 1-14

Abstract: Abstract Hydrogen-based direct reduced iron (H2-DRI) is crucial for decarbonizing the steel sector but is limited by the availability of renewable energy. Here, we propose H2-DRI deployment schemes in China’s steel sector at moderate and aggressive scales, incorporating three renewable energy sources with a resolution of 1 km × 1 km across 570 steel units. Results indicate that 52.6–55.8% of China’s current steel units lack sufficient renewable energy supply for H2-DRI deployment due to uneven distribution of these energy sources. Renewable energy can fulfill 97-100% of hydrogen demand at the moderate scale, whereas the aggressive scale requires supplemented fossil fuels accounting for one-third to one-half. H2-DRI can decarbonize steel production to 0.15–0.91 t CO2 t-1 steel at the moderate scale, but the emissions would raise by up to over sixfold at the aggressive scale. Furthermore, H2-DRI fueled by solar and wind energy exhibits poorer economic and water usage performance at the aggressive scale. We highlight the necessity of avoiding excessive H2-DRI deployment and recommend prioritizing its implementation in steel units located in regions with abundant solar and wind sources nearby.

Date: 2025
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DOI: 10.1038/s41467-025-59730-1

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