(Energy Analytics Institute, 17.Dec.2024) — Australia’s BlueScope, BHP and Rio Tinto selected the Kwinana Industrial Area, south of Perth, as the location to develop Australia’s largest ironmaking electric smelting furnace (ESF) pilot plant.
The groundbreaking project combines the expertise of Australia’s 2 largest iron ore miners and its biggest steelmaker. Together, they will test technology to enable the use of Pilbara iron ore to produce iron without the need for traditional blast furnaces, as the companies come together to try to accelerate the decarbonization of steelmaking, Woodside Energy announced 17 Dec. 2024 in an official statement.
The NeoSmelt collaboration was formed in Feb. 2024 by the three Australian companies. It combined BHP and Rio Tinto’s deep knowledge of Pilbara iron ore, with BlueScope’s unique operating experience in ESF technology.
Subject to funding, the project anticipates a decision to enter feasibility studies in the second-quarter 2025 and is targeting final investment decision (FID) for the pilot plant in 2026, with operations expected to begin in 2028.
Woodside to join NeoSmelt consortium
Woodside will join the NeoSmelt consortium as an equal equity participant and energy supplier of potentially hydrogen, natural gas and electricity, subject to finalizing commercial arrangements.
The NeoSmelt project remains open for collaboration with other parties that complement its objectives, Woodside said in the statement.
The pilot plant aims to prove Pilbara iron ore can be used to produce lower-carbon emissions molten iron using direct reduced iron (DRI)-ESF technology.
The pilot plant would produce 30,000-40,000 tonnes of molten iron a year. It will initially use gas to reduce iron ore to DRI, but once operational, the project aims to use lower-carbon emissions hydrogen to reduce iron ore, Woodside said.
If successful, NeoSmelt has the potential to open a pathway to near-zero emissions4 steelmaking using Pilbara iron ore and ensure the longevity of Australia’s iron ore industry.
The NeoSmelt parties assessed a number of pilot plant locations in Australia before selecting the Kwinana Industrial Area, utilizing its access to transport logistics and existing infrastructure, coupled with support from a A$75mn contribution from the Western Australian Government.
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