BlueScope, BHP and Rio Tinto select Kwinana for 40,000 tpa green iron pilot plant

Steelmaker BlueScope and iron ore miners, BHP and Rio Tinto have selected Kwinana Industrial Area, south of Perth, to host an electric smelting furnace pilot plant, which aims to test and optimise lower-carbon emissions molten iron from Pilbara iron ore using direct reduced iron (DRI)-ESF technology. 

Rio said the trio assessed a number of locations in Australia before selecting Kwinana, citing access to transport logistics and existing infrastructure, as well as a $75 million contribution from the Western Australian government.

The three companies formed the “NeoSmelt” collaboration in February, and have been joined by Woodside Energy as an equal equity participant, subject to finalising commercial arrangements.

According to a statement from Rio on Tuesday, the pilot plant will make 30,000 to 40,000 tonnes of molten iron a year, initially using natural gas to reduce iron ore to DRI, then aiming to use hydrogen for this once operational.

The two step process will then see DRI “being charged into the ESF”, resulting in iron that is then “suitable for the basic oxygen steelmaking process”. Together, this could replace a traditional blast furnace for iron production. 

The project anticipates a decision to enter feasibility studies “in Q2 2025”, with a target of a final investment decision (FID) for the pilot plant in 2026, then operations expected in 2028.

Rio cited estimates reductions “up to 80 per cent in CO2 emission intensity are potentially achievable” using Pilbara iron ore and DRI-ESF.

Tania Archibald, BlueScope Chief Executive Australia. said: “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.”

Picture: piles of iron ore at Cape Lambert, Australia (credit Rio Tinto)

Further reading

Rio Tinto to invest $215 million in BioIron facility

Rio Tinto’s BioIron success in low carbon ironmaking

Rio Tinto to bring iron ore rail car manufacturing to the Pilbara