Circored direct-reduction

Circored Technology represents a breakthrough in sustainable steel production. It is the world’s first industrial-scale direct reduction process for fine iron ores, based on fluidized bed technology and using 100% hydrogen as the sole reducing agent. By processing fine ores directly, Circored eliminates the costly and energy-intensive pelletizing step, significantly reducing both operational costs and the carbon footprint of ironmaking.

Proven in an industrial plant with a capacity of 500,000 tons per year of hot briquetted iron (HBI), Circored sets a new benchmark for efficiency and environmental responsibility in the steel industry.

Circored process for high-grade iron ore
2-stage direct reduction to produce HBI

Circored, developed by SMS group, is the only industrially proven process that uses 100% hydrogen to directly reduce iron ore fines in a fluidized bed. This breakthrough avoids energy-intensive pelletizing or sintering and produces high-quality DRI or HBI with metallization above 94%. The process is flexible for high- and low-grade ores and integrates seamlessly with electric arc furnaces or smelting reduction routes. By replacing fossil fuels with hydrogen, Circored achieves the lowest carbon footprint in ironmaking, enabling steel producers to meet stringent decarbonization targets and ESG goals while maintaining efficiency and cost competitiveness.

Circored by SMS group is a breakthrough in sustainable steelmaking, offering a 100% hydrogen-based direct reduction process for fine iron ore. Unlike traditional blast furnace route or shaft furnace direct reduction, Circored eliminates the need for costly and energy-intensive pelletizing, using a fluidized bed system to process ore fines (0.1–2.0 mm, and up to 6 mm depending on ore properties). The process features a two-stage reactor: a circulating fluidized bed (CFB) for fast pre-reduction up to 80%, followed by a bubbling fluidized bed (FB) for final reduction above 95% metallization—all at temperatures below 700°C, which prevents sticking and ensures easy process control.
Circored’s flexibility allows for direct feeding of DRI or HBI to electric arc furnaces, maximizing energy efficiency. For ultrafine ores, a patented microgranulation process enables their use without additional heat-hardening. The process can also be combined with electric smelting for low-grade ores, removing impurities via slag and supporting further refining.
Compared to conventional BF/BOF steelmaking, Circored drastically reduces CO₂ emissions (down to ~0.2 t CO₂/t steel with green hydrogen and electricity), and is cost-competitive due to the omission of pelletizing and lower CO₂ taxes. The process has been proven in an industrial-scale plant, producing over 300,000 tons of high-quality HBI. Circored by SMS is ready for commercial deployment, enabling steelmakers to meet stringent decarbonization targets and ESG goals with a reliable, scalable, and future-proof technology.

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Benefits

100% hydrogen-based reduction—no fossil fuels required

Eliminates pelletizing and sintering, reducing energy or raw material cost

Lowest proven CO2 footprint in ironmaking

Industrial-scale validation ensures reliability and scalability

Compatible with EAF and smelting routes for flexible steelmaking

Utilizes high- and low-grade ores, including ultrafines

Future-ready for ESG compliance and decarbonization goals
Circored pre-reduction process
Simplified process for low-grade ores

Circored, developed by SMS group, offers a breakthrough for green steelmaking from low-grade iron ores. The simplified one-stage Circored process uses pure hydrogen to pre-reduce iron ore fines to 75–85% metallization at moderate temperatures < 700°C. The product is then fed into an electric smelting furnace (ESF) for final reduction, gangue removal, and carburization. This route enables the use of abundant, lower-quality ores, reduces energy and hydrogen consumption, and achieves near-zero CO₂ emissions when powered by renewable energy. Circored’s flexibility supports both transitional integration with blast furnaces and the final vision of fully electrified, fossil-free steelmaking.

Circored by SMS group is a pioneering solution for sustainable steelmaking from low-grade iron ores. The process addresses a critical challenge: only about 4% of global iron ore resources are high-grade and suitable for direct reduction, while the remaining 96% are low-grade ores typically processed via carbon-intensive blast furnaces. Circored’s simplified one-stage process uses pure hydrogen in a circulating fluidized bed (CFB) reactor to pre-reduce fine ores (typically 0.1–2 mm, up to 6 mm with microgranulation) to 75–85% metallization at 630–730°C. The resulting pre-reduced Iron with 75–85% metallization is ideal for electric smelting furnaces (ESF), where final reduction, slag removal, and carburization occur.
This approach offers several advantages: it eliminates the need for pelletizing, reduces CAPEX and OPEX, and allows for flexible energy integration—including renewable electricity for heating. The process is highly efficient, with hydrogen consumption of 40–50 kg/t DRI and thermal energy demand of 0.45–0.65 MWth·h/t DRI. CO₂ emissions can be reduced to near zero with full electrification and green hydrogen.
Circored’s modularity supports both transitional and final green steelmaking pathways. In the short term, pre-reduced iron can be injected into blast furnaces or used in smelting reduction processes, lowering coke consumption and emissions. In the long term, the Circored+ESF route enables fully fossil-free steelmaking, utilizing abundant low-grade ores and supporting a circular, climate-neutral industry. The process is validated by pilot plant trials and is ready for industrial deployment, making it a cornerstone of the roadmap to green steel.

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Benefits

Enables use of abundant low-grade iron ores for green steelmaking

100% hydrogen-based pre-reduction—no fossil fuels required

Produces pre-reuced iron optimized for electric smelting

Achieves 75–85% metallization at moderate temperatures (630–730°C)

Near-zero CO2 emissions with renewable energy integration

Flexible integration with both existing blast furnaces and future electric smelting routes

Proven at pilot scale, scalable for industrial deployment