BHP and Rio Tinto will build a low-carbon iron plant in Western Australia
BHP Australia and Rio Tinto Australia will develop together a pilot plant for producing low-carbon iron using Pilbara ore as part of their efforts to accelerate decarbonisation within the steel industry. The companies announced this in a statement released on Tuesday.
The facility will produce molten steel using direct reduced iron technology (DRI), and renewable energy in an electric melting furnace (ESF). It could have a production of up to 40,000 tons per year.
BlueScope Steel will develop the facility in Western Australia's Kwinana Industrial Hub.
The firms stated that if the technology is successful, it could allow steelmakers to use Australian iron ore in order to meet global demands with emissions close zero.
Steel production, which is a critical material for infrastructure, and the transition to net-zero energy, contributes approximately 8% of global CO2 emissions.
In February, the pilot "green-iron" project was announced between Rio Tinto, BHP and BlueScope Steel to reduce emissions for steelmakers worldwide who depend on Australian iron ore.
After assessing various locations in Australia, the project has finalised its location, details and forecasted outcome.
Woodside Energy will also join the collaboration, called 'NeoSmelt,' as an equal equity partner and energy provider, subject to final commercial arrangements.
The companies stated that the project will enter feasibility studies during the second quarter 2025. A final investment decision is expected to be made in 2026. It aims to start operations in 2028. (Reporting by Roushni Nair in Bengaluru; Editing by Abinaya Vijayaraghavan)
(source: Reuters)
