Rio Tinto has signed a Joint Development Agreement (JDA) with Australian environmental technology company Calix to support construction of Calix’s Zero Emissions Steel Technology (Zesty™) demonstration plant in Western Australia, which could enable Pilbara iron ores to be used in lower-emissions steel making.
If approved, the demonstration plant will be built at a site in Kwinana, south of Perth, that had been earmarked for Rio Tinto’s previously announced BioIron™ Research and Development Facility and associated pilot plant.
Rio Tinto has determined that the current furnace design for BioIron requires additional development to minimise technical risks and optimise its performance.
It says it remains committed to the long-term potential of BioIron technology, and research and development continues in partnership with the University of Nottingham and sustainable technology company, Metso.
Rio Tinto will invest more than A$35 million, subject to project milestones and comprised of in-kind and financial contributions, to assist Calix with the Zesty Green Iron Demonstration Plant, which also has Australian Renewable Energy Agency (ARENA) support.
The Zesty process is compatible with lower grade iron ore and uses electric heating and hydrogen reduction to produce reduced-emissions iron.
Rio Tinto Iron Ore Chief Executive Matthew Holcz said: “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. We’re pleased to partner with Calix, an Australian technology company, to help progress the Zesty technology to be able to use Pilbara iron ores for lower-emissions steel making. In parallel, we’ll keep progressing BioIron with our partners, the University of Nottingham and Metso, to further its potential. Both projects are part of our work to reduce emissions and support the future of iron ore in Australia and the communities that depend on it.”
Western Australian Premier Roger Cook said: “Locally made green iron is a key part of my vision to become a renewable energy powerhouse and make more things here. 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. I welcome this agreement between Calix and Rio Tinto, which will play an important role in growing this exciting new industry in WA.”
The Kwinana location provides access to established utilities, ports and other infrastructure. It is also near the NeoSmelt1 facility for potential downstream processing of Direct Reduced Iron produced by the Zesty plant. Rio Tinto is one of five companies developing the NeoSmelt project, which earlier this year secured ARENA funding.
Calix also has a A$44.9 million ARENA grant, subject to conditions, for the Zesty Green Iron Demonstration Plant, as previously announced by the company.
Calix Chief Executive Officer Phil Hodgson said: “The Joint Development Agreement with Rio Tinto is a major milestone in the commercialisation of Zesty. It provides cash and hands-on support, including industry leading resources, expertise and market reach to progress the Zesty Demonstration project. This strong support from Rio Tinto provides further validation of the potential for deployment of the Zesty technology to the world’s largest minerals and metals market, its potential to help decarbonise a critical industry responsible for ~8% of global CO2 emissions, and the opportunity to help future-proof Australia’s largest source of export income. We look forward to working with Rio Tinto, further industry partners and other key stakeholders, and ARENA on this important Australian project.”
Under the terms of the JDA, Rio Tinto will support the Zesty project to reach a Final Investment Decision (FID) through technical support, engineering services and advocacy.
Subject to FID and successful project construction, Rio Tinto will supply up to 10,000 t of a range of Pilbara iron ores for use in plant commissioning and the initial testing phase of the project, as well as introductions to potential customers for downstream use of the Zesty product.
The partnership enables Rio Tinto to exercise a non-exclusive global and perpetual licence agreement for the potential commercial use of the Zesty technology, sub-licence the technology to its affiliates and customers, and act as a non-exclusive global marketing agent for the Zesty technology.
