NeoSmelt bolstered by $19.8m

Australian Renewable Energy Agency (ARENA) has committed funding to support NeoSmelt joint venture’s planned pilot plant in Kwinana, WA.

The funding will progress a front-end engineering design (FEED) study for the project which aims to prove Pilbara iron ore can be used to produce lower-carbon iron using a direct reduced iron-electric smelting furnace (DRI-ESF) pathway.

If successful, this technology has the potential to unlock longer term alternatives to the traditional blast furnace steelmaking route and help ensure the longevity of Australia’s iron ore industry.

All five joint venture participants, BlueScope, BHP (ASX: BHP), Rio Tinto (ASX: RIO), Woodside Energy and Mitsui Iron Development, hold equal equity stakes in the joint venture.

BlueScope Australia chief executive Tania Archibald says the funding marks a significant step forward in developing a technology for lower-carbon emissions steelmaking using Pilbara ore.

“With this backing from government and industry leaders, we now have the opportunity to develop world leading technology that will have potential application across the global steel industry and provides the foundation for a future Australian lower-carbon emissions iron export industry,” she said.

The funding from ARENA is in addition to the $75m contribution from the WA Government announced last year.

Federal Resources Minister Madeleine King says Kwinana is now playing a central role in the world’s energy transition and a big part in global efforts to decarbonise.

“If we can decarbonise steel making, we will create far fewer emissions when building the cities of the world,” she said.

The project has now entered the feasibility phase which will help inform a final investment decision, expected in 2026.

Operations at the pilot plant are planned to begin in 2028 and expected to produce 30,000-40,000t of molten iron ore annually.

Once operational, the project aims to use lower-carbon emissions hydrogen to reduce iron ore.