Canada well positioned to lead global green iron exports, accelerate steel decarbonisation – research
Montreal, 14 May 2025: Canada is well-positioned to become a world leader in near-zero emission green iron exports, and to spearhead decarbonisation in the domestic and global steel industries, according to new research by Lund University, commissioned by SteelWatch.
With rich iron ore reserves, strong renewable energy resources, advanced infrastructure, a skilled workforce, and firm political commitment to net-zero by 2050, Canada has the key ingredients to take a leading role in the transition to green iron [near-zero emissions virgin iron]. Green iron trade could help steelmakers around the world – particularly in central and Eastern Europe, UK, Japan and South Korea – in decarbonising their steelmaking.
The steel industry is only just waking up to the potential to trade green iron instead of iron ore, and the emergence of Canada into this market, alongside Australia, would be transformative. By producing near-zero emissions iron with green hydrogen, Canadian iron production could eliminate up to a total of 105 Mt of CO2 from domestic and foreign steelmaking annually.
The report, titled Strategic decarbonisation of the Canadian iron and steel industry, outlines a triple opportunity for Canada: cutting emissions, creating green jobs, and strengthening green value chains globally.
Caroline Ashley, Executive Director of SteelWatch, said: “We often hear from steelmakers that deep decarbonisation is ‘too difficult’. So this is great news that Canada has potential to transform from iron mining to exporting green iron. Steelmakers who want to meet ambitious climate targets will need a reliable supply of low-emissions green iron, and Canada can provide that. It’s a win-win opportunity: a new industrial opportunity for Canada, and a trusted supply of green iron to feed the electric arc furnaces of steelmakers in countries where their own green hydrogen suppliers are too limited.
With estimated production costs of USD 430–520 per tonne, the new report puts Canada among the most competitive global producers of green iron, just behind the US. With policies like the EU’s tightening of the Emissions Trading Scheme, the Carbon Border Adjustment Mechanism (CBAM) and clean procurement rules on the horizon, securing access to low-emissions iron will be critical for steelmakers aiming to remain competitive.
Ashley added:
“Many players in the industry know that Sweden is the first mover in green iron production, or that Australia is abuzz with public and private plans for the shift from exporting iron ore to producing green iron, made with renewable energy-based hydrogen. But few know that Canada has quality ore and renewable power that is comparable to Sweden. Competition amongst Australia, Sweden, Canada and others will accelerate innovation and the emergence of this new commodity, while giving buyers confidence in a range of trusted suppliers.”
Chris Bataille, Canadian researcher and founding partner of the Center on Global Energy Policy at Columbia University, one of the authors of the report, said:
“Our research shows that Canada has the potential to play a central role in the international iron and steel value chain. With key local ingredients in place, including high-quality iron ore reserves and strong renewable energy potential, we are very well placed to provide near-zero emissions green iron to a global market at a competitive price. Success will depend on both global and domestic Canadian action, including securing international demand for green iron through diplomatic efforts, building industrial partnerships and collaboration, and ensuring a balanced transition across Canada’s regions.”
Recently, SteelWatch has shown the green iron trade as one of the promising solutions for green steelmaking. [1] This innovative method of separating the ironmaking process from the steelmaking process is attracting attention as a significant emissions reduction strategy for the steel sector.
Editorial notes:
Authors: Jonas Algers (Lund University) and Dr Chris Bataille (Columbia University Center on Global Energy Policy). The research was undertaken by Lund University, and commissioned by SteelWatch with funding from the Trottier Family Foundation
Contact:
For international enquiries:
Gozde Incegul
Communications Lead at SteelWatch
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For enquiries in Canada:
Jess Harris
Senior Consultant, Temple Scott Associates
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437-227-6123
About Lund University: Lund University was founded in 1666 and is one of the world’s top universities. The University has approximately 46,000 students and 8,600 staff making it one of the largest universities in the Nordics.
About Steel Watch: SteelWatch is a non-profit organisation dedicated to campaigning for the transformation to a decarbonised steel industry, enabling the environment, communities and workers to thrive. Read more: www.steelwatch.org
About the Trottier Family Foundation: The Trottier Family Foundation is a Montreal-based private Canadian charitable foundation, aimed at providing support to registered charities and qualified donors in the areas of education, science, health, the environment, as well as to community and international organisations.
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