A potential new significant pathway for low-carbon steelmaking has been opened, with Rio Tinto and China Baowu successfully completing industrial-scale trials demonstrating Pilbara Blend iron ore can be used in hydrogen-based direct reduction.
The trials, conducted at Baowu’s Baoshan Iron & Steel Zhanjiang steel operations in China, used a hydrogen-based shaft furnace to produce direct reduced iron (DRI) from pellets comprising one-third Pilbara Blend ore, processed through a five million tonne per annum (Mtpa) grate-kiln facility and a 1Mtpa hydrogen-based shaft furnace.
The DRI was then successfully converted into steel through an industrial-scale basic oxygen furnace and separately tested in a small-scale 500kg electric smelting furnace.
The results are significant for the global steel industry, and while direct reduction shaft furnace production is already widely established for high-grade iron ores, the ability to expand feedstock options to include the mid-grade ores that characterise the Pilbara region has long been a key focus for producers and steelmakers working toward decarbonisation.
The trials suggest these ores could play a meaningful role in lower-carbon steel production when combined with hydrogen-based direct reduction and electric smelting furnace technology.
Rio Tinto iron ore sales and marketing vice president Ramona Sim described the outcome as an important technical milestone.
“This is an important technical milestone demonstrating that Pilbara Blend iron ore can be used in a direct reduction shaft furnace process at an industrial scale, which has the potential to significantly reduce emissions when compared with the traditional blast furnace,” she said.
“The trials, alongside our broader ongoing work, continue to build confidence that Pilbara iron ore can play a critical role in lower carbon steelmaking.
“We remain committed to working closely with our customers to develop practical, scalable solutions that support their decarbonisation goals and position Pilbara iron ore for a lower-carbon future.”
Baowu Low Carbon Centre executive deputy director and Baowu Central Research Institute deputy director Dr Mao Xiaoming characterised the results as a major breakthrough.
“These trials represent pragmatic actions implemented under the Climate Partnership MoU between China Baowu and Rio Tinto,” Mao said.
“The successful industrial-scale trials help both parties advance understanding in lower-emissions iron and steel making technologies.
“More importantly, they reflect the strong technical collaboration between Baowu and Rio Tinto, combining our respective expertise across iron ore, process innovation and industrial application.”
The milestone delivers on a key initiative established under a 2023 Memorandum of Understanding (MoU) between the two companies, which set out a framework for jointly advancing decarbonisation projects across the steel value chain.
Signed in Shanghai by Rio Tinto chief commercial officer Alf Barrios and China Baowu vice president Hou Angui, the MoU outlined several ambitious targets — including the research and demonstration of a pilot-scale electric melter at a Baowu steel mill, the optimisation of pelletisation technology for Australian ores, and a joint study into the potential for low-carbon iron production in Western Australia itself.
At the time, Barrios said that the partnership aimed to address one of the industry’s most pressing challenges: developing a viable low-carbon pathway for low-to-medium grade iron ores, which account for the vast majority of global iron ore supply.
The completion of these trials marks a notable step forward in that ambition. Rio Tinto and China Baowu have collaborated for more than 50 years across project development, technology innovation and steelmaking research, and have been progressing a multi-phase decarbonisation partnership since 2020.
Both companies have confirmed they will continue working together on additional projects under the MoU, with the broader goal of developing scalable, commercially viable solutions for lower-emissions steelmaking at a global scale.
