Brazil’s Green Iron Opportunity

Brazil is positioned to become a global leader in green iron exports due to its abundant renewable energy, which can make hydrogen-based direct reduction (H2-DRI) steel production up to 65% cheaper than in other countries.

• Brazil possesses a significant cost advantage in producing green iron for steelmaking using hydrogen-based direct reduction (H2-DRI), a technology identified as the primary commercially viable method for removing all emissions from iron production. Because renewable hydrogen can account for as much as 50% of the final cost of H2-DRI steel, Brazil's grid-connected renewable energy resources allow for production costs that are up to 65% lower than those in other steelmaking nations.
• Brazil has a current opportunity to capture a share of the green iron export market, supported by an emerging landscape of iron, ammonia, and renewable hydrogen projects. A green iron export strategy is presented as a way to drive domestic economic growth and job creation in Brazil while simultaneously reducing global steel emissions and providing a competitive alternative to fossil-based production in markets with carbon costs and emissions differentiation.

APA

RMI (2025). Brazil’s Green Iron Opportunity. https://rmi.org/resources/brazils-green-iron-opportunity/

Chicago

RMI. Brazil’s Green Iron Opportunity. 2025. https://rmi.org/resources/brazils-green-iron-opportunity/.

Wikipedia

{{cite report |author=RMI |title=Brazil’s Green Iron Opportunity |date=4 June 2025 |url=https://rmi.org/resources/brazils-green-iron-opportunity/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025brazils, author = {{RMI}}, title = {{Brazil’s Green Iron Opportunity}}, institution = {RMI}, year = {2025}, month = jun, url = {https://rmi.org/resources/brazils-green-iron-opportunity/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }