EAF Feedstock Strategy 2.0: Leveraging ammonia-based pig iron to hedge HBI supply and quality risk

11 May 2026, 12:10
20m
Porta room

Porta room

Oral Presentation EEC 3.B Use of alternative iron sources like DRI, HBI (Hot Briquetted Iron), and pig iron Use of alternative iron sources

Speaker

Jihong Ji (SMS Group)

Description

Steelmakers face a strategic choice in supplying future EAF routes: either relocate iron production to remote DRI/HBI plants situated near low‑cost renewable energy, or bring that remote energy back to existing sites in an efficient chemical form such as green ammonia. While both pathways appear comparable at first glance, their economics and risk profiles diverge once full value‑chain effects are considered. Ammonia shows similar round‑trip efficiency to HBI in conventional DRI/EAF routes, but its performance improves significantly when used in Easymelt, enabling higher overall RTE and approx. -100€/t lower green‑steel costs. Moreover, ammonia is backed by a global market nearly 100× larger than the entire European steel sector’s potential ammonia demand, providing deep liquidity and resilience to supply–demand shocks, unlike dedicated HBI chains whose profitability exclusively depends on stable long‑term steel market. The analysis demonstrates how integrating ammonia‑based Easymelt pig iron alongside HBI creates a more flexible, lower‑risk feedstock portfolio for EAF sites, while preserving the value of existing BF assets.

Speaker Company/University SMS Group
Speaker Country Luxembourg

Author

Jihong Ji (SMS Group)

Co-authors

Mr Guillaume Brosse (SMS Group) Dr Klaus-Peter Kinzel (SMS Group) Ms Serap Bektas (SMS Group)

Presentation materials

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