Another Step Towards Independence

Establishment of the Direct Reduction Unit

Another significant step taken by Bafgh Steel is the inauguration of the Bafgh Steel Direct Reduction Unit. The goal of establishing Bafgh Steel Direct Reduction Unit is to supply the necessary sponge iron for the steelmaking and casting unit of the complex and to eliminate the direct sale of iron ore pellets from the province. This unit has an annual production capacity of 800 thousand tons of sponge iron using the MIDREX® method.

The Necessity of Establishing the Direct Reduction Unit

Direct reduction is a chemical reaction that occurs between carbon monoxide and the oxygen present in iron oxide, resulting in the production of iron, which will later be used in the Complex’s Steelmaking Unit. Therefore, the reduction unit is an intermediate step in the steel production process that holds special importance. In this unit, sponge iron is produced from iron ore pellets generated in the pelletizing unit, utilizing the MIDREX® method. Subsequently, the produced iron will be transported to the steelmaking unit of the complex to be charged into the electric arc furnaces.

In the establishment of this company’s reduction unit, the latest technologies from around the world have been employed. This ensures not only efficient increased production and reduced production side costs but also minimizes our environmental footprint, resulting in minimal pollution.

The Process of Reduction and Sponge Iron Production at Bafgh Steel

The primary goal of establishing the direct reduction unit is to initiate the sponge iron production process once this unit becomes operational. The progression of this process is as follows:
For the direct reduction of iron using the MIDREX® method, shaft furnaces are utilized
The furnace feedstock comprises iron oxide lumps and pellets, which move from top to bottom while being reduced by hot reducing gas.
The reducing gas is produced in the Direct Reduced Iron reformers or gas-solid reactors in the MIDREX® process through the partial oxidation of natural gas in reaction with the output gas of the reduction furnace, utilizing nickel catalysts. After reduction, this material passes through the cooling area of the furnace, where cooling gases are used.
Finally, the produced sponge iron, with a temperature lower than 100 degrees Celsius, exits from the bottom of the furnace.
In this manner, through the operation of the reduction unit, Bafgh Steel aims at not only creating direct and indirect job opportunities but also achieving self-sufficiency in the production of steel ingots and the products derived from them. Consequently, this would enable the complex to meet the diverse needs of various industries for steel products.

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