Why the World Looks to China for Direct Reduced Iron Technology: A Chinese Company's Journey to Master the Full Technological Chain
As the global steel industry pivots towards low-carbon transformation, Direct Reduced Iron (DRI) technology has become a critical battleground. In 2024, global DRI production surpassed 140 million tonnes, with India firmly in the lead at 54.7 million tonnes, followed by Iran and Russia. However, a noteworthy phenomenon in this global race is that the entity possessing all mainstream DRI technologies and achieving leadership in multiple sectors is, unexpectedly, China – a nation long associated primarily with blast furnaces.
So, why does the world still look to China for DRI technology? The answer lies not only in China's commitment to its "dual carbon" goals but also in the deep cultivation and breakthroughs achieved by a cohort of technology-focused enterprises across the entire DRI technological chain. Among them, HBMER, as one of only two Chinese companies holding the Special Grade Qualification for Metallurgical Engineering General Contracting, is redefining the future landscape of global DRI technology through its command of the complete technological spectrum.
DRI technology isn't a single, monolithic path. From the perspective of the reducing agent, it can be divided into carbon-based reduction and hydrogen-based reduction. Looking at the product form and process route, it splits into solid-state direct reduction (producing sponge iron for electric arc furnaces) and smelting reduction (producing hot metal directly, potentially replacing the blast furnace route).
Different nations choose paths based on their resource endowments. India, rich in non-coking coal, favors the coal-based rotary kiln route. Middle Eastern countries, leveraging abundant cheap natural gas, develop gas-based shaft furnaces. China, facing immense pressure from scarce coking coal resources and environmental constraints, must explore diversified technological pathways.
Driven by these national circumstances, China has not only avoided neglecting any single technological path but has effectively learned to "walk on two legs." It continuously optimizes coal-based reduction while accelerating breakthroughs in hydrogen-based reduction and smelting reduction. HBMER stands as a quintessential practitioner of this strategy.
If the growth in global DRI technology over the past decade relied mainly on Indian rotary kilns and Middle Eastern gas-based shaft furnaces, the technological high ground of the next decade will belong to those capable of simultaneously mastering carbon-based and hydrogen-based, solid-state and smelting routes. HBMER is one of the few companies globally possessing this capability.
SL/RN Rotary Kiln Technology is the mainstream global process for coal-based direct reduction, dominating the Indian market. In China, HBMER is a leading supplier in this field, having accumulated profound engineering experience and localized optimization capabilities.
RHF (Rotary Hearth Furnace) Reduction Technology is a key process for treating iron-bearing dust and sludges, enabling resource recycling. HBMER has participated in the construction of over ten RHF production lines, ranging from 60,000 to 300,000 tonnes per annum (tpa), building a complete capability from design to operation in this sector.
HIsmelt Smelting Reduction Technology represents a revolutionary, coke-free ironmaking route. It directly utilizes non-coking coal and low-to-medium grade iron ore fines, featuring a short process flow and low pollution, making it ideal for regions with scarce coking coal or tight environmental capacity. HBMER not only owns several core software patents for this technology but has also advanced HIsmelt to its second generation, continuously iterating through industrial applications.
However, what truly cements HBMER's global leadership is its breakthrough in hydrogen-based direct reduction.
Hydrogen metallurgy is considered the ultimate pathway for low-carbon transformation in the steel industry. Compared to carbon reduction, the product of hydrogen reduction is water, with faster reaction rates and near-zero carbon emissions. However, pure hydrogen reduction faces a series of engineering challenges related to hydrogen heating, transport, and injection.
Through a deep partnership with MCC (Metallurgical Corporation of China), HBMER has achieved systemic leadership in hydrogen-based reduction:
Reducing Gas Purification: From hydrogen production via coke oven gas or natural gas to the technological leap of pure hydrogen reduction, HBMER has validated reduction efficiency and stability under high-hydrogen atmospheres in multiple projects.
Reforming Technology Innovation: In catalysts and oxygen reforming, HBMER's proprietary technology now ranks among the global leaders, capable of adapting to efficient reduction under various gas source conditions.
Large-Scale Engineering Capability: HBMER has participated in constructing numerous hydrogen-based reduction projects, ranging from 300,000 to 2.5 million tpa, covering various furnace types like shaft furnaces and fluidized beds. The project scale and technical specifications are among the world's highest.
Core Equipment Breakthrough: The independently developed large-scale HBI (Hot Briquetted Iron) briquetting machine has been applied in multiple DRI projects globally, breaking the long-standing reliance on imported key equipment.
It's worth noting that countries and companies achieving true large-scale industrial application of hydrogen-based reduction are still rare worldwide. HBMER's breakthroughs signify China's transition from a "follower" to a "leader" in next-generation ironmaking technology.
Mastering technology is one thing; translating it into engineering practice and exporting it globally is another. As one of only two Chinese enterprises holding the Special Grade Qualification for Metallurgical Engineering General Contracting, HBMER possesses full-chain service capabilities from design, procurement, and construction to operation.
Even more noteworthy is its innovative business model. Through models like PPP (Public-Private Partnership) and EPC+F (Engineering, Procurement, Construction, plus Financing) , HBMER can offer global clients one-stop solutions ranging from financing to technology. This holds strong appeal, particularly for developing countries rich in resources but lacking infrastructure.
In 2024, global DRI production grew by 3.8% year-on-year, with low-emission gas-based DRI accounting for 65.7% of the total. In this wave of low-carbon transition, mastering the commanding heights of DRI technology means seizing the discourse power in the future of the steel industry.
China's status as a "must-watch" in this field stems not from sheer production capacity alone, but from the technological accumulation of companies like HBMER, who, over two decades, have progressed from coal-based to hydrogen-based routes, from technology introduction to original innovation, and from isolated breakthroughs to comprehensive control of the entire technological chain.
As HBMER itself states: "For DRI technology, the world looks to China, and China looks to HBMER." This is not just corporate confidence but a microcosm of the Chinese steel industry's transformation from "large" to "strong." Looking ahead, HBMER is willing to share Chinese technology with the world and contribute excellently to the low-carbon, high-efficiency evolution of global DRI engineering.