Ceres has published commissioned analysis finding that direct reduced iron is the lowest-cost new-build ironmaking technology across Minnesota’s Iron Range, the Gulf Coast, Pennsylvania and Northern Indiana. The study concludes that domestic production using direct reduced iron could cost-effectively replace the USD 2 billion to USD 3 billion of pig iron imported annually while providing a cleaner alternative to coal-powered blast furnaces. The analysis estimates that new greenfield direct reduced iron plants could achieve the 15% return typically required by investors, reduce local air pollution by 80% and cut overall pollution by 40% compared with blast furnace technology. It identifies near-term opportunities for flexible-fuel projects using natural gas or green hydrogen, with location decisions expected to depend on infrastructure, feedstock access and downstream demand. Ceres recommends that states seeking investment engage steelmakers through permitting and incentives.
Ceres2026-08-12
US Ceres analysis identifies direct reduced iron as the lowest-cost new-build technology across four major steel regions
Ceres-commissioned analysis finds that direct reduced iron is the lowest-cost new-build ironmaking technology across four major US steel regions. New plants could meet investors’ typical 15% return threshold, reduce local air pollution by 80% and cut overall pollution by 40% compared with blast furnaces.