Rio Tinto has signed a joint development agreement with Calix to support the construction of the company’s Zero Emissions Steel Technology (Zesty) demonstration plant in Western Australia.
The plant – to be developed to help reduce carbon footprint from using coal in blast furnaces – could enable iron ore made in the Pilbara to be used in lower-emission steelmaking.
If approved, the demonstration plant will be built at a site in Kwinana, south of Perth, previously earmarked for Rio Tinto’s BioIron research and development facility – which has been determined to need additional development to reduce technical risks and optimise performance.
Rio Tinto will invest more than $35 million to assist Calix with the Zesty green iron demonstration plant, subject to project.
The plant also has Australian Renewable Energy Agency (ARENA) support and is compatible with lower grade iron ore and uses electric heating and hydrogen reduction to produce reduced-emissions iron.
“The world needs low-emissions steel if it is going to decarbonise, and we continue to look at a range of ways Pilbara iron ores can help to do this as new technologies emerge,” Rio Tinto iron ore chief executive Matthew Holcz said.
Support has been given by Western Australia Premier Roger Cook, who has previously emphasised the importance of green steel in upcoming infrastructure plans across the state.
“Coupled with my government’s recent announcement that government will take an ‘if not, why not’ approach to green steel procurement on major government projects, the Zesty green iron demonstration plant will support our efforts to diversify WA’s economy so that it can remain the strongest in the nation,” Cook said.
Under the terms of the joint development agreement, Rio Tinto will support the Zesty project to reach a final investment decision (FID) through technical support, engineering services and advocacy.
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