Effective utilization of low grade iron ore (FeOOH) and biomass represents a promising method to reduce the dependency on fossil fuels and decrease raw material costs in the ironmaking industry. A process system diagram was made and a comparison of exergy losses in conventional methods was conducted to evaluate the proposed system, integrated pyrolysis-tar decomposition over a porous ore through Chemical Vapor Infiltration (CVI) process. As the main product, the CVI ore was employed for energy storage based on carbon deposition and pre-reduced ore, Fe3O4 as a product of proposed system that consisted of three units: pyrolysis, CVI, and dehydration-separation. The exergy of CVI ore increased significantly owing to exergy recovery through tar decomposition. In the basis of 3.86%wt carbon deposition (experimental value) and producing of 1000 kg metallic Fe, the exergy loss of the proposed system was found to decrease by about 17.6% compared to that in conventional systems by the recovery of both chemical and thermal tar exergy. The exergy loss decreased drastically to 37.0% when the expected carbon deposition was attained (10%wt). The CVI ore offered great chance to replace the coke breeze as a heat source in sinter plant. With regard to experimental value, the sinter plant could be operated without using additional coke breeze when the CVI ore content was 70% to total input ore. The total enthalpy of CVI ore consisted of the oxidation of deposited carbon and Fe3O4 in the ratio of 60.2% and 39.8%, respectively. Based on these results, the proposed system proffered effective biomass and low grade ore utilization as well as led to decrease in CO2 emissions by the ironmaking industry.