Brazil’s Green Iron Opportunity

As global demand for lower-emissions products rises, Brazil is uniquely positioned to thrive in the renewable hydrogen and green iron and steel transformation, thanks to its natural resources. This Insight Brief explores Brazil’s cost-competitive advantage in producing green iron for steelmaking via hydrogen-based direct reduction (H₂-DRI), the leading large-scale, commercially viable technology for eliminating all iron production emissions. With renewable hydrogen constituting up to 50% of the final cost of steel made from H₂-DRI, Brazil’s abundant and grid-connected renewable energy resources enable globally cost-competitive production, with costs up to 65% cheaper than other steelmaking countries.

Brazil’s emerging landscape of renewable hydrogen, ammonia, and iron projects shows promising momentum, and there is a window of opportunity for Brazil to seize green iron export market share. This brief illustrates the win-wins of a green iron export agenda: increasing domestic jobs and economic growth in Brazil while lowering global steel emissions and competing with fossil-based alternatives in regions with emissions-differentiated markets and carbon costs. The brief also outlines the needs, opportunities, and necessary next steps from policymakers and stakeholders across the value chain to make the green iron industry a reality in Brazil.

Green iron exports from Brazil offer a cost-competitive option to decarbonize iron production in key steel-producing regions

This report was written with support from Sequoia Foundation. Views reflect those of the authors and not necessarily those of the supporting organization.