CHAMWE KAIRA
Mercedes-Benz and the German-Namibian company HyIron signed a Memorandum of Understanding (MoU) to advance the industrial scaling of low carbon dioxide (CO₂), hydrogen-reduced iron.
HyIron Green Technologies (Pty) Ltd is located on Farm Bloemhof 109, Arandis in the Erongo region.
The declaration of intent builds on a successful pilot project and aims to pave the way for potential series application within the steel supply chain.
The agreement was announced during the Mercedes-Benz Sustainability Dialogue 2026 and builds on previously proven results.
In a joint pilot project with the mining company Anglo American and HyIron, South African iron ore fines were reduced to iron using green hydrogen.
This material has already been successfully processed into a demonstrator component for the all-electric Mercedes-Benz EQS.
At its Oshivela plant in Namibia, the company uses an innovative rotary kiln process in which iron ore is reduced using green hydrogen instead of coal.
According to HyIron, every ton of iron produced this way saves around 1.8 tons of CO₂ compared to conventional production.
By signing the declaration of intent, both partners are taking their collaboration to the next level.
The MoU aims to test and validate the process for industrial mass production.
According to Mercedes-Benz, the project serves as a blueprint for how transparency, responsible raw material sourcing, and emissions reduction can be brought together from the mine to the finished vehicle component.
HyIron was established through a partnership of Namibian and German companies that work in the field of renewable energies and engineering.
At its heart is the HyIron technology, an innovative process to reduce iron ore in a rotary kiln with the help of green hydrogen, thus entirely carbon neutral.
Every tonne of iron produced this way replaces 1.8 tonnes of CO₂ in the traditional process.
HyIron aims to implement and rapidly scale the production of green iron.
Net zero industrial manufacturing of iron is, already today, economically competitive with positive environmental and economic impacts throughout the value chain.
HyIron has already received two 6-megawatt electrolyzers, which are now being installed on-site.
These key components enable the production of green hydrogen and lay the foundation for climate-friendly iron production – a groundbreaking innovation for heavy industry.
Oshivela will be one of the biggest primary production sites of green iron worldwide.
The project saves 27 000 tons of CO₂ annually, making a significant contribution to the global energy transition and the decarbonization of steel production.
