You are completely off.
Why don't you try to do a Fermi estimate before voicing your concerns? Maybe things are not so bad.
Steel is one of the few materials that humans produce in quantities exceeding one gigaton per year (the other ones are coal, oil, natural gas, concrete, and 4 agricultural crops, sugar cane, corn, rice and wheat).
A lot of steel is recycled. It depends how you count, but between 60% and 90% of steel is recycled. Still, a lot of steel is produced out of iron ore each year.
Currently to make a ton of steel out of ore we emit about 2.2 tons of CO2, including upstream emissions[1, page 26]. If we make it from scrap steel, we only emit about 0.4 tons of CO2. It is projected that by 2050, both emissions will go to 0.1 tons CO2-equivalent per ton of steel.
The article mentions an energy density of 11.3 kWh per liter. Iron has a density of about 7.9 kg/l so, we're talking about 1.4 kWh per kilogram. From the article, we learn that the way the energy will be extracted from the iron powder is via burning in a regular thermal power plant. Good power plants now have efficiency of up to 64%, but let's says with the new fuel, they'll just produce 50%. The charging part will probably be more efficient, but let's say the round trip will be only 20% efficient. So what? This could still turn out to be much more economically efficient than hydrogen, or any other alternatives. If you want, we can do some estimates there too, but your concern was about emissions, not about profitability.
Let's focus on emissions. Each time you burn one ton of iron powder, you generate (assuming 50% efficiency) about 0.7 MWh of electricity. In the US, on average, in order to produce that much electricity, you emit about 0.5 tons of CO2-equivalent, according to the EPA. If you charge and burn one ton of iron only 5 times, you come out ahead. But you will charge and burn it hundreds if not thousands of times. It's just iron, it's not a battery that degrades over time. It's iron powder, after each round trip, it's iron powder again.
Each ton of iron powder can potentially reduce emissions by thousands of tons of CO2 equivalent. Each year all of humanity emits about 50 gigatons of CO2 equivalent, gross. The planet absorbs about half of that. A fraction of a gigaton of iron powder could help us get rid of all of our emissions.
This thing here could be a revolution. Until now, I thought that our only economic way to store long time or transport long distance electricity is hydrogen. Iron powder solves so many problems with hydrogen.
Feel free to criticize it, but don't simply be dismissive. Bring information to the table, so everyone here can appreciate it was worth their time reading your comment.
[1] https://rmi.org/wp-content/uploads/2022/09/steel_emissions_r...
[2] https://www.epa.gov/energy/greenhouse-gases-equivalencies-ca...