Calix has secured $44.9 million in funding from the Australian Renewable Energy Agency (ARENA) to build a zero emissions steel technology (ZESTY) green iron demonstration plant.
The project aims to produce up to 30,000 tonnes per annum of hydrogen direct reduced iron (H2-DRI) or hot briquetted iron (HBI), using Calix’s innovative ZESTY process.
The technology combines electric heating and hydrogen reduction to cut emissions from steel production.
“Our shared vision is that a green iron industry here in Australia can add value to, and help future-proof, Australia’s iron ore industry,” Calix chief executive officer and managing director Phil Hodgson said.
“Following successful pilot-scale testing and global recognition for ZESTY from the Net-Zero Industries Award at COP29 and the Decarb Connect Next Gen Award over the past 12 months, this next milestone continues to mark our progress in realising ZESTY’s potential.
“With the iron and steel industry responsible for approximately 7 per cent to 8 per cent of global carbon emissions, we look forward to working with ARENA to advance the project and help address this significant global challenge and opportunity.”
ZESTY is designed to lower costs by enabling the use of lower-grade ores and fines, removing the need for pelletisation, and reducing hydrogen consumption to as little as 54kg per tonne of iron. Its flexible operations are also compatible with variable renewable energy sources.
“What makes ZESTY so compelling is its potential to dramatically lower the amount of hydrogen required to convert iron ore into pure iron,” ARENA chief executive officer Darren Miller said.
“ZESTY, in combination with use of renewable electricity from Australia’s world-class solar and wind resources, has the potential to create a new green iron industry targeting both domestic and export markets as the world transitions away from fossil fuels.”
Federal Minister for Climate Change and Energy Chris Bowen said green metals are a priority area for the Federal 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.
“Australia is the world’s largest exporter of iron ore — and with that comes a massive opportunity to help decarbonise global steelmaking.”
The demonstration plant, designed to toll process a wide variety of iron ores, will enter detailed engineering ahead of a final investment decision in the 2025–26 financial year (FY26). Subject to financing, construction could begin in 2026, with operations starting in 2028.
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