Iran Cuts Steel Production Costs with New Generation of Catalysts
WANA (Jan 04) – A breakthrough in Iranian-developed catalyst technology is set to revolutionise the domestic steel industry by boosting production efficiency, slashing energy consumption, and lowering overall operational costs.
The steel industry serves as a cornerstone of the national economy, but its reliance on high-tech equipment has historically presented challenges. At the heart of this industry lies Direct Reduced Iron (DRI) production, a process heavily dependent on specialised chemical catalysts that determine the quality of sponge iron and the efficiency of the plant.
$400 Million in Foreign Exchange Savings
The unveiling of the third-generation DRI catalyst at the “For-Iran” exhibition marks a significant milestone in Iran’s quest for industrial self-sufficiency. Developed by a prominent Iranian knowledge-based company, this innovation addresses the urgent need to reduce dependence on imports.
Since its founding in 2004, the firm has localised over 40 types of catalysts for the steel, refining, and petrochemical sectors. Their efforts have reportedly saved the country more than $400 million in foreign currency.
According to Mohammad Barbar, a representative from the company’s R&D department:
- 30 steel units (DRI plants) across Iran currently utilise the company’s catalysts.
- 52 petrochemical units are powered by their specialised products.
- The company has exported to Russia, Iraq, Uzbekistan, and Venezuela, generating over $50 million in revenue over the last five years.

Iran’s steel industry. Social Media / WANA News Agency
Engineering the Future: Higher Performance, Lower Pressure
The newly launched third-generation DRI catalyst is designed to optimise the chemical reaction that converts methane gas into the reducing gas required to turn iron pellets into sponge iron.
Key Technical Advancements
- Dual-Dome Design: The catalyst features a unique “double-dome” shape that increases surface area while reducing pressure drops, significantly boosting catalytic activity.
- Thermal & Mechanical Stability: Optimised chemical compositions allow the catalyst to maintain its structural integrity at extreme temperatures between 900°C and 1000°C.
- Improved Nickel Distribution: By altering the base structure, the company has enhanced the distribution of Nickel (the active component), allowing for more efficient reactions with methane gas.
“Through dynamic research and development, we have evolved a product we’ve manufactured for 20 years into a high-performance next-generation tool,” says Barbar. “This specific catalyst has already accounted for $9 million in foreign exchange savings.”
Impact on the Industry
The shift to this advanced technology means steel plants can achieve higher production rates with less energy. Last year, the new catalyst was successfully loaded at the Mianeh Steel Complex, with full performance data expected to be released soon.
By securing the supply chain for these critical materials, Iran is positioning its steel industry to be more competitive on the global stage, ensuring high-quality output while minimising the environmental and financial costs of production.

Iran Climbs Three Spots Among World’s Steel Producers. Social media/ WANA News Agency





