Low Carbon Emission “Green” Iron Production in Minnesota

Abstract

Steel is essential to modern life, used in everything from infrastructure to transportation. Yet the industry that produces it is one of the most polluting in the world, responsible for approximately 7 to 9 percent of global carbon dioxide emissions. As the push to decarbonize grows stronger, new technologies are emerging to replace the traditional blast furnace (BF) method with lower-emission alternatives such as electric arc furnaces (EAFs), which use direct-reduced iron (DRI) as feedstock. This shift presents a major opportunity for Minnesota. Northeastern Minnesota is rich in iron ore and has long supplied taconite pellets to steelmakers in other states. But as the industry transitions from BFs to EAFs, which cannot use taconite in its current form, Minnesota must adapt. Developing the capacity to convert taconite into DRI would significantly reduce emissions while adding more value to local resources. With demand for BF-grade pellets declining, in-state DRI production could help economically revitalize Iron Range communities and position Minnesota as a leader in clean ironmaking. This paper explores whether Minnesota has the resources, infrastructure, and industry interest to support a DRI facility. While the state has key inputs such as iron ore, water, and natural gas, limited renewable electricity and environmental permitting challenges remain. Realizing green iron in Minnesota is not just technological issue; it requires navigating complex political, social, and environmental dynamics. Addressing legacy harms from mining and ensuring inclusive stakeholder engagement will be essential, and supportive policy and sustained collaboration are necessary for Minnesota to lead in this next phase of steelmaking.