NeoSmelt has welcomed Federal Government support and two new joint venture participants as it progresses its ironmaking electric smelting furnace (ESF) pilot plant.
The consortium – founded by BlueScope, BHP and Rio Tinto – has been joined by Woodside Energy and Mitsui Iron Ore Development, with each of the five parties now holding equal equity in the joint venture.
The planned facility aims to be Australia’s largest ironmaking ESF pilot plant, based in the Kwinana industrial area south of Perth, Western Australia.
Australian Renewable Energy Agency (ARENA) has committed $19.8 million to support a front-end engineering design (FEED) study for the NeoSmelt project, which aims to prove iron ore from the Pilbara can be used to produce lower-carbon iron using a direct reduced iron – electric smelting furnace (DRI-ESF) pathway.
The project has now entered the feasibility phase and will help inform a final investment decision, which is being targeted for 2026.
“Today marks a significant step forward in developing a technology for lower-carbon emissions steelmaking using Pilbara ore, and we’re delighted by ARENA’s $19.8 million commitment to support the feasibility phase of this groundbreaking R&D (research and development) pilot plant,” BlueScope chief executive Australia Tania Archibald said.
“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.”
Federal Resources Minister Madeleine King said the fuels, metals, fertiliser, chemicals and grain shipped from Kwinana have powered WA and the region since the 1950s.
“Now Kwinana is playing a central role in the world’s energy transition and a big part in global efforts to decarbonise,” King said.
“If we can decarbonise steelmaking, we will create far fewer emissions when building the cities of the world.”
WA Premier Roger Cook said the facility was an example of how governments and businesses are coming together to put the state at the forefront of the global push to slash emissions from steel production.
If approved, operations at the ESF plant is expected to produce 30,000–40,000 tonnes of molten iron annually. This is planned to begin by 2028.
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