The project combines the expertise of BlueScope, BHP and Rio Tinto to test technology to enable the use of Pilbara iron ore to produce iron without the need for traditional blast furnaces, as the companies come together to try to accelerate the decarbonisation of steelmaking.
The companies formed the NeoSmelt collaboration in February, combining BHP and Rio Tinto’s knowledge of Pilbara iron ore, with BlueScope’s operating experience in ESF technology. The NeoSmelt parties also announce Woodside Energy will join the consortium as an equal equity participant and energy supplier, subject to finalising commercial arrangements.
The pilot plant aims to prove Pilbara iron ore can be used to produce lower-carbon emissions molten iron using direct reduced iron (DRI)-ESF technology. The pilot plant would produce 30,000 to 40,000 tonnes of molten iron a year. It will initially use natural gas to reduce iron ore to DRI, but once operational, the project aims to use lower-carbon emissions hydrogen to reduce iron ore.
“Today marks a significant milestone in what is truly a unique and transformative project to help decarbonise the steel industry. The progress made during the pre-feasibility stage is a testament to the collaboration of all parties involved. BlueScope’s role as Project Manager leverages our deep iron and steelmaking experience at the Port Kembla Steelworks and our unique capability as the operator of the world’s only electric smelting furnace processing DRI in New Zealand,” said Tania Archibald, BlueScope Chief Executive Australia.
