SWITCH Mobility Hands Over 100 Electric Buses to Mauritius to Boost Green Transport

A milestone for green steel: SuSteelAG consortium achieves hydrogen-based ore reduction on an industrial scale

The hydrogen rotary kiln in Oshivela, Namibia. Photo: HyIron.

Berlin, 13.04.2026. In 2025, the international SuSteelAG consortium – led by Federal Institute for Materials Research and Testing (BAM) – launched its mission to decarbonize steel production using hydrogen, including when working with lower‑grade ores. Now, the first industrial‑scale pilot test has been successfully completed in Namibia: In an electrically powered hydrogen rotary kiln, 80 tonnes of Australian iron ore were converted climate‑neutrally into direct‑reduced iron (DRI). With this, SuSteelAG is paving the way for a sustainable value chain linking Australia, Namibia, and Germany -from iron production and refinement to green steel.

The steel industry accounts for around seven percent of global CO₂ emissions; transforming it is therefore a central lever of the energy transition. This is where the SuSteelAG project (Sustainable Steel from Australia and Germany) comes in: Coordinated by BAM, the project is developing a hydrogen‑based direct‑reduction process that, for the first time, can also utilize lower‑grade ores – thereby expanding the resource base available for green steel production.

Until now, climate‑neutral steel production has only been feasible using premium ores with an iron content of roughly 70 percent. These ores, however, are scarce and expensive worldwide. Moreover, existing processes require the use of a shaft furnace, which in turn demands cost‑ and energy‑intensive pelletizing of the ore.

In early April 2026, for the first time, untreated Australian iron ore with a comparatively low iron content (~56 percent) was processed into direct‑reduced iron at industrial scale at the Oshivela site in Namibia, where project partner HyIron Green Technologies operates an innovative hydrogen rotary kiln.

For the campaign, 80 tonnes of iron ore supplied by Australian mining and technology company Fortescue – also a SuSteelAG partner – were available. The German industrial furnace manufacturer TS Elino GmbH was primarily responsible for designing and constructing the rotary kiln. Prior to the industrial trial, BAM had extensively studied hydrogen‑based iron reduction at laboratory scale and derived the optimal operating parameters for the large‑scale process. Based on these findings, the Oshivela plant succeeded in refining the Australian ore into iron under climate‑neutral conditions and with a throughput of approximately five tonnes per hour.

“We have now reached a scale that is highly relevant for industrial production and demonstrated that hydrogen‑based direct reduction of lower‑grade ores can be operated economically – an essential step toward accelerating green steel production in Germany and beyond,” says Christian Adam (BAM), who coordinates the international SuSteelAG consortium. “This also means that green steel production need not be constrained by the limited availability of premium ores.”

The next step will be to ship the refined iron from Namibia to Germany. Salzgitter Mannesmann Forschung GmbH will investigate how the refined iron can best be integrated into existing industrial processes in order to eventually produce climate‑friendly steel for cars and other key products.

RWTH Aachen University (Advanced Mineral Processing Technologies Research and Teaching Unit – AMR) will investigate how Australian ores with lower iron content can be further optimized for direct reduction.

In addition to the companies already mentioned, the SuSteelAG consortium includes HyIron GmbH, Fraunhofer Institute for Surface Engineering and Thin Films IST, Fraunhofer Institute for Ceramic Technologies and Systems IKTS, Heidelberg Manufacturing Deutschland GmbH, and HANSAPORT.

SuSteelAG is funded with approximately €4.5 million under the 7th Energy Research Programme of the German Federal Ministry of Research, Technology and Space. The innovative hydrogen rotary kiln operated by HyIron Green Technologies in Namibia was supported by the German Federal Ministry for Economic Affairs and Energy.

India Revises CAFE 2027 Fuel Efficiency Norms, Shifts to Phased Compliance Framework

New Delhi, Apr 13 (BNP): The government has proposed revised fuel efficiency standards under CAFE 2027, moving away from a strict target-based system to a phased and more flexible compliance approach, according to a draft prepared by the Ministry of Power in consultation with the Bureau of Energy Efficiency (BEE).

The updated framework introduces a flatter compliance curve, aimed at creating a more balanced system and reducing the earlier advantage available to heavier vehicles.

CAFE 2027 represents the third stage of India’s Corporate Average Fuel Efficiency roadmap, which is designed to improve vehicle efficiency and support the country’s long-term climate and energy goals. The proposed norms are set to take effect from April 1, 2027, and will be tightened gradually through FY32.

The draft reportedly relaxes earlier proposals made in September 2025 by adjusting the emission curve, allowing slightly higher fuel consumption limits than initially suggested.

To encourage cleaner mobility, the framework includes “super credits” for electric and hybrid vehicles, allowing them to be counted multiple times in fleet emission calculations. Plug-in hybrids and flex-fuel hybrids are also expected to receive higher credit benefits.

In addition, the proposal permits credit trading between manufacturers, giving automakers greater flexibility in meeting compliance requirements.

However, the report cautions that penalties for non-compliance could still run into hundreds of crores for large manufacturers, making adoption of cleaner technologies and effective credit management crucial for the industry.

Rising Energy Costs to Pressure Cement Makers’ Margins by Up to 200 bps: Crisil

New Delhi, Apr 13 (BNP): Rising energy costs are expected to weigh on the profitability of cement manufacturers, potentially compressing operating margins by up to 200 basis points, according to a report by Crisil.

The report noted that higher fuel and power expenses remain a key concern for the sector, even as demand conditions stay relatively stable. Cement production is energy-intensive, making manufacturers particularly sensitive to fluctuations in input costs.

It added that companies may face margin pressure if energy prices remain elevated, unless they are able to pass on higher costs through price increases or improve operational efficiency.

Overall, the outlook suggests cautious profitability for the sector in the near term amid persistent cost headwinds.

Gold Slips in Futures Market Amid Weak Demand

New Delhi, Apr 13 (BNP): Gold prices declined on Monday, slipping by ₹602 to ₹1,52,050 per 10 grams in futures trading, as weak spot demand weighed on sentiment.

On the Multi Commodity Exchange (MCX), gold contracts for June delivery were trading lower by 0.39% at ₹1,52,050 per 10 grams, with a total business turnover of 1,491 lots.

Analysts said the decline in prices was largely driven by subdued global cues and reduced buying interest in the spot market.