You can avoid any CO2 production in the iron production process via replacing the natural gas inputs to the Direct Reduced Iron (DRI) method with hydrogen. To compare DRI with carbon vs only hydrogen:
with carbon and hydrogen from natural gas/coal gasification:
CH4 + CO2 -> 2CO + 2H2
Fe2O3 + 3CO -> 2Fe + 3CO2 (exothermic in >50% H2 environment)
with water-sourced hydrogen:
2H2O -> O2 + 2H2
Fe2O3 + 3H2 -> 2Fe + 3H2O (endothermic, requires energy input)
There are two issues with using hydrogen, which can be overcome:
>"The energy balance of the shaft furnace is affected by the absence of the exothermic carbon monoxide reduction. . . Thus, it is necessary to add energy to the shaft furnace to carry heat in the burden."
>"The second issue is the resulting DRI carbon content; the DRI will have 0% carbon with pure hydrogen. The majority of DRI is used in EAFs, and EAF steelmaking practice generally employs carbon addition... Under current melting practices, it will be necessary to add hydrocarbons at some place in the process to achieve the desired carbon level... However, this added carbon will then be converted to CO2 in the EAF... Alternatively, carbon from a renewable source (like biomass) could be used."
https://www.midrex.com/tech-article/ultra-low-co2-ironmaking...