The Australian NeoSmelt resource consortium will build a major pilot electric iron smelter in Kwinana, Western Australia, supporting a broader push towards low-emissions steel.
The consortium is led by the country's largest iron miners, BHP and Rio Tinto and steel producer BlueScope. Western Australia's government has agreed to support the project through a A$75mn ($47.5mn) investment, it said on 17 December.
NeoSmelt expects the site to produce between 30,000-40,000t of molten iron at the site once it is operational by 2028. The site will use natural gas to process ore. The group will also look at moving towards hydrogen-based production processes over time.
But the NeoSmelt development is still at an early stage. The consortium will make a final investment decision on the plant sometime in 2026.
Other firms are also currently working on low-carbon smelting projects in the state. Global mineral firm Fortescue plans to house an electric furnace at its green iron plant at its Christmas Creek mine. The company hopes to produce 1,500t/yr of iron at the facility, beginning in 2025.
Another younger metals firm Green Steel of WA (GSWA) is developing a similar smelter in the state's Mid-West region. GSWA is scheduled to start producing 2.5mn t/yr of iron at the plant, using natural gas and hydrogen, in 2028. The company will make a final decision on the project next year.
The recent push towards green steel production comes after federal government initiatives designed to support sustainable production across the country. The Australian government announced in its most recent budget that it will focus on supporting aluminium and steel decarbonisation efforts over the next decade.
