CO2 removal in electricity production has received a lot of attention, but CO2 removal in iron and steel production has received little attention as of yet. This option is analysed in more detail in this paper. The results suggest that a CO2 capture system, based on a shift reaction and physical absorption, in combination with underground or oceanic carbon storage, could be attractive. Costs are estimated to amount to 10.3-18.8 US$/t CO2, depending on the iron production process. This cost level is similar to or even lower than the cost level for CO2 removal for new coal fired power plants. Global Co-2 emissions could be reduced by 4%, Japanese CO2 emissions could be reduced by 6.5% (80 Mt/yr) in case this option were applied to its full extent by the iron and steel industry. The use of this option is currently limited by uncertainties regarding Co-2 storage potentials in deep aquifers and the environmental impacts of oceanic storage. It is recommended to study these issues in more detail.