Western Australia is set to become home to the nation’s largest steelmaking electric smelting furnace.
BHP and Rio Tino announced in February they would work with steelmaking giant BlueScope to scout out a location for a world-leading pilot plant that will deliver green steel for the global market.
The plant will test out new technology to produce iron without metallurgical coal, slashing emissions from the steelmaking process.
The collaboration, dubbed NeoSmelt, has today found a place to set down roots, with the majors declaring Kwinana to be the project’s new site.
“A successful pilot plant of this scale would be a huge achievement as we work with our partners, here and around the world, to help fast-track near zero emission pathways for steelmakers using Pilbara ores,” BHP WA Iron Ore asset president Tim Day said.
“These are the Pilbara ores that power this nation’s economy, so getting it right would be a major step forward in setting up WA and Australia to be an important part of a low greenhouse gas emission future.”
Rio Tinto Iron Ore chief executive Simon Trott said the project is just one of the ways the major is working with its peers to develop the technology needed to reduce the carbon intensity of iron and steelmaking.
“We must find better ways to produce the most commonly used metal in the world, while meeting the needs of our planet and our climate objectives,” Trott said.
“The NeoSmelt pilot plant builds on the suite of projects Rio Tinto has underway with our customers and suppliers to find better ways to accelerate their efforts to meet their decarbonisation targets.”
The decision to locate the project in Kwinana follows extensive assessment of options around Australia, and recognises Kwinana’s important role as one of the nation’s premier industrial areas for green industries.
The WA Government will invest $75 million towards the project, including for project infrastructure in the Kwinana industrial area.
“Securing NeoSmelt for Kwinana positions WA at the cutting edge of the global push to slash emissions from steel production – and means our Pilbara iron ore will be processed right here in WA,” WA Premier Roger Cook said.
“Putting the global steel industry on the pathway to zero emissions means more jobs in processing in WA, and a strong future for WA’s iron ore industry.”
The NeoSmelt parties have also today announced Woodside Energy will join the consortium as an equal equity participant and energy supplier, subject to finalising commercial arrangements.
“Woodside supports the NeoSmelt project’s goals of exploring lower-emissions steelmaking pathways for Pilbara iron ores and unlocking new skills and capabilities through the energy transition,” Woodside energy executive and president and chief operating officer Australia Liz Westcott said.
“Natural gas and hydrogen may enable emissions reductions in steelmaking, and we are proud to bring to the NeoSmelt project our expertise, experience and know-how as a global supplier of energy.”
Pre-feasibility works are expected to conclude in March next year, with a final investment decision in 2026 and the plant potentially commissioned in 2028.
WA is the world’s largest single exporter of iron ore into the global market. With the steel industry generating about eight per cent of global carbon emissions, WA is set to play a leading role in reducing emissions from steel.
Earlier this month, a report from the Chamber of Minerals and Energy WA found the large-scale production of green iron in WA could reduce global emissions by 1.2 per cent by 2050 – effectively offsetting nearly every tonne of CO2 currently produced in Australia.
Production on such scale will also see over $74 billion in economic value generated and over 19,600 direct jobs supported.
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