German-Australian Project Aims to Unlock Green Iron Potential

SuSteelAG

SuSteelAG tests hydrogen-based reduction near mine sites to slash steelmaking emissions

A joint project between Germany’s Federal Institute for Materials Research and Testing (BAM) and Australian miner Fortescue is exploring a hydrogen-based process to produce green iron from lower-grade ores, enabling sustainable steelmaking at scale.

The initiative, called SuSteelAG, targets fine iron ores with 55–70% Fe content, which are traditionally underutilized. Instead of relying on direct reduction and pelletising near the steel mill, the project will use rotary furnaces near mining operations in Australia, reducing and pelletising the ore at source.

Energy-Optimized Supply Chain from Australia to Germany

By converting ore into iron in Australia using green hydrogen, the project avoids high energy demands for pelletising and drying in Germany. According to BAM, this approach minimizes renewable energy consumption in importing countries and enables energy-efficient trade in green raw materials.

Once reduced, the iron would be shipped directly to German steelmakers, where it could be used with minimal further processing, helping decarbonize one of Europe’s most energy-intensive sectors.

Strategic Goals and Timeline

The SuSteelAG project will run until the end of 2027, aiming to develop a scalable model for international green steel production chains. By valorizing previously uneconomical ore grades, the collaboration could open new revenue streams for miners while helping German mills cut emissions.