Calix secures $44.9 million grant for green iron plant

Calix has executed a $44.9 million grant agreement with the Australian Renewable Energy Agency to build a green iron demonstration plant using its Zero Emissions Steel Technology, according to an announcement on Thursday.

The demonstration plant will have a targeted capacity to produce 30,000 tonnes per annum of hydrogen direct reduced iron or hot briquetted iron. The facility is designed to deliver toll processing of iron ores from various producers to support Australian iron ore viability in a low emissions steel value chain.

ARENA chief executive Darren Miller said Australia had a critical role in reducing emissions across the steel value chain as the world's largest producer and exporter of iron ore. “What makes ZESTY so compelling is its potential to dramatically lower the amount of hydrogen required to convert iron ore into pure iron,” he said.

The ARENA grant provides up to 50 per cent of the project budget, subject to matched contribution and key project milestones being achieved. Calix plans to finance the remaining budget through equity funding from strategic or financial investors and project financing.

A final investment decision is targeted for the 2026 financial year, with procurement and construction planned to commence in 2026. The commissioning and operations phase is scheduled to begin in 2028.

Minister for Climate Change and Energy Chris Bowen said green metals were a priority area for the government's Future Made in Australia agenda. “We're backing technologies like ZESTY because cutting emissions from heavy industry is not only essential to reaching net zero — it's also good for Australian workers and good for our economy,” he said.