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This report by RMI argues that the US steel industry faces a critical decision point regarding seven aging coal-based blast furnaces in the Great Lakes region. The author contends that investing hundreds of millions of dollars to 'reline' these furnaces to extend their life by 20 years risks creating stranded assets, perpetuating severe local pollution, and missing the transition to low-emissions steel. Instead, the report advocates for a transition to Hydrogen-Ready Direct Reduced Iron (DRI) coupled with Electric Arc Furnaces (EAF) to ensure long-term competitiveness and align with climate goals.

This briefing by RMI analyzes the potential for transitioning the Great Lakes region's steel industry to near-zero-emissions production. It identifies a gap between aggressive federal incentives—such as the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA)—and the lack of coordinated, steel-specific industrial strategies at the state level. The report evaluates three primary decarbonization pathways: Blast furnace–basic oxygen furnace (BF-BOF) with carbon capture and storage (CCS), natural gas direct reduced iron (DRI) with CCS, and renewable hydrogen-based DRI, noting that hydrogen DRI offers the lowest emissions intensity and most competitive levelized costs when subsidies are included. It emphasizes the region's economic importance, as the Great Lakes house all of the US's integrated steel mills and two-thirds of the nation's steelworkers, while warning that failure to modernize could lead to a loss of competitiveness and jobs to other regions or international markets.