The global iron and steel industry is an energy-intensive industry, and energy-saving in this industry is of great significant. A novel ironmaking process combining coal gasification with the smelting reduction of iron ore (CCGSR) is proposed, and an exergy analysis is applied to evaluate its thermodynamic performance. The results show that the exergy efficiency of the entire system is 88.15 % whereas the energy efficiency is 98.64 %. The exhaust gas of pre-reduction furnace is the main exergy output and has great energy-saving potential. The local exergy loss rates in the pyrolysis, pre-reduction, and smelting reduction furnaces are 55.81 %, 7.24 %, and 36.95 %, respectively. The pyrolysis and smelting reduction furnaces exhibit the largest exergy loss, owing to the mixing of high-temperature gas of the smelting reduction furnace and circulating gas, coke powder gasification, and heat transfer. In addition, after the exhaust gas is utilized to form a cogeneration system of iron and electricity, the exergy efficiency increases from 40.18 % to 50.06 % comparable with 600 MW ultra-supercritical coal-fired generating units. The present work also provides some suggestions for reducing exergy destruction.