MENA on track to become global leader in green steel transformation

Electric arc furnaces (EAFs) and DRI-based steel production lead to lower carbon emissions compared to conventional methods, while the region's ability to transition from fossil gas to green hydrogen strengthens MENA's position in sustainable steel production.

One of MENA's biggest advantages is easy access to high-quality iron ore concentrate and pellets. While global markets face raw material supply challenges, the region stands out with its reliable resources. Moreover, major producers and suppliers are reinforcing this advantage with capacity expansion plans. In this context, projects such as the planned new DRI plant in Libya attract attention. Tosyali SULB, a joint venture between Turkish steel producer Tosyalı Holding and Libya's United Steel Company for Iron and Steel (SULB), announced that it has reached an agreement with Midrex Technologies and Germany-based SMS Group to build the country's first direct reduced iron plant.

The first phase of the plant to be built in Libya will see the commissioning of a unit with an annual DRI production capacity of 2.5 million tons. The long-term goal is to build the world's largest DRI complex with a capacity of 8.1 million tons. SULB Chairman Ahmed Ghadalla emphasized that this investment will significantly increase Libya's DRI export capacity and make the country a regional green steel production center.

The region is home to some of the world's lowest cost solar and wind energy projects, providing an ideal location for green hydrogen production. By capitalizing on these advantages and investing in low-emission technologies, MENA has the potential to become a major player supplying green steel, especially to the European and Asian markets. The new plant in Libya and other major projects in MENA are expected to increase the region's green steel production capacity and strengthen the supply of low carbon steel in global markets.

Completion of the project could make Libya one of the largest DRI producers in Africa and consolidate its leadership in MENA's green steel transformation. Large-scale investments in the region are expected to boost MENA's global competitiveness in sustainable steel production and contribute to achieving carbon neutral production targets.