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29 January 2026

Green Hydrogen Production for Decarbonizing the Steel Industry: Energy and Economic Assessment of Electrolysis and Ammonia Cracking Systems

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1
Department of Chemistry, Materials and Chemical Engineering «G. Natta», Politecnico di Milano, Piazza Leonardo da Vinci, 32, 20133 Milano, Italy
2
Department of Chemical Engineering Materials Environment, Sapienza University of Rome, Via Eudossiana 18, 00184 Rome, Italy
3
Italian Institute for Environmental Protection and Research (ISPRA), Department of VAL-RTEC, Via Vitaliano Brancati 48, 00144 Roma, Italy
4
Department of Chemical, Materials and Production Engineering, University of Naples Federico II, P.le V. Tecchio 80, 80125 Napoli, Italy
This article belongs to the Special Issue Techno-Economic Evaluation of Hydrogen Energy

Abstract

The global transition toward a low-carbon economy has intensified the interest in green hydrogen as a key enabler of industrial decarbonization. In particular, the steel sector, one of the most carbon-intensive industries, offers significant opportunities for emissions reduction through H2-based technologies. This study presents a techno-economic assessment of alternative green hydrogen supply pathways, namely alkaline electrolysis and ammonia cracking, and evaluates their integration into hydrogen-based direct reduction (HyDR) routes. Process simulations are performed using Aspen Plus® V14 to quantify the energy consumption, hydrogen demand, and associated CO2 emissions across multiple configurations and case studies. A comprehensive 3E (energy, economics, and environmental) evaluation framework is applied to compare system performance and assess the suitability of each pathway for large-scale deployment. The results indicate that ammonia cracking represents a technically viable and potentially competitive hydrogen supply option for steel decarbonization under the assumed operating conditions, highlighting its relevance as a transitional pathway toward low-carbon steel production.

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