China has commenced full operation of the world’s first million-tonne hydrogen-based near-zero-carbon steel production line in Zhanjiang, Guangdong Province, according to a report. Operated by Baowu Steel, the facility became fully operational on 23 December 2025 and represents a major breakthrough in transforming one of the world’s most carbon-intensive industries. The project demonstrates how high-capacity hydrogen metallurgy can replace traditional coal-dependent processes in large-scale steel manufacturing.

The core technological shift centres on the replacement of coke with hydrogen as the main reducing agent in the ironmaking process. According to reports, the hydrogen-based metallurgical electric smelting method alters the fundamental chemical reactions in the furnace, removing a significant portion of the carbon dioxide typically produced during iron ore reduction. This transition marks one of the most substantial steps China has taken in decarbonising its heavy industrial base.

Engineering breakthroughs and carbon-cutting performance

At the heart of the Zhanjiang facility is a one-million-tonne hydrogen-based shaft furnace that produces direct reduced iron. The furnace has achieved its targeted metallisation levels, ensuring that the feedstock is suitable for high-end steel applications. The direct reduced iron is then processed in high-efficiency green electric furnaces to produce high-grade steel slabs, embedding emission reductions throughout the production chain.

Technical specifications from the site indicate that the hydrogen steel line can reduce carbon emissions by 50 to 80 percent compared with conventional blast furnace methods. The project is expected to prevent more than 3.46 million tonnes of carbon emissions annually. The line can cut around 3.14 million tonnes of emissions each year, equivalent to creating close to 2,000 square kilometres of forest, the report said.

The development aligns with significant trends across China’s metallurgical sector. Other innovations include “flash ironmaking”, a technique highlighted in recent reports which uses a vortex lance to inject iron ore powder into a high-temperature reactor for near-instantaneous chemical reaction. This process, which is thousands of times faster than early laboratory methods, represents another pathway for increasing efficiency in ironmaking.

The successful launch of the Zhanjiang hydrogen steel line comes during a pivotal period for China’s steel industry as it advances the goals of the 14th Five-Year Plan. Green transformation has been defined as a central priority and between 2021 and 2024, 126 green steel plants were newly certified. Beyond significant emission reductions, the project positions China to remain competitive in global markets by producing near-zero-carbon steel that can meet emerging requirements such as the EU’s Carbon Border Adjustment Mechanism.

Source:

https://interestingengineering.com/innovation/worlds-first-million-ton-hydrogen-steel-production