Reduced iron derives its name from these processes, one example being heating iron ore in a furnace at a high temperature of 800 to 1,200 °C (1,470 to 2,190 °F) in the presence of the reducing gas syngas, a mixture of hydrogen and carbon monoxide, or pure hydrogen.
Steel made using DRI requires significantly less fuel, in that a traditional blast furnace is not needed.
[3] Direct reduction processes were developed to overcome the difficulties of conventional blast furnaces.
The initial capital investment and operating costs of direct reduction plants are lower than integrated steel plants and are more suitable for developing countries where supplies of high grade coking coal are limited, but where steel scrap is generally available for recycling.
Factors that help make DRI economical: Direct reduced iron is highly susceptible to oxidation and rusting if left unprotected, and is normally quickly processed further to steel.
This makes for an energy-efficient feedstock for specialty steel manufacturers which used to rely upon scrap metal.