ASX-listed Athena Resources has signed a memorandum of understanding with Warradarge Energy and Fenix Resources to develop a green iron project in Western Australia’s Mid West.

The three parties have agreed to establish a new jointly owned entity, Mid West Green Iron, which will oversee the staged development of a hydrogen-based iron production facility. The venture aims to combine Athena’s ultra-high-grade magnetite feedstock, renewable hydrogen from Warradarge, and Fenix’s integrated logistics to deliver low-emission iron products for domestic and international steelmakers.

“The quality, scale, location and metallurgy of the Byro magnetite project provide a unique ability to provide the ultra-high-grade concentrate products that are required for a regional green iron development,” said Athena MD and CEO Peter Jones.

“Warradarge Energy have a similar regional focus and synergistic scaled development plan for their Warradarge green hydrogen project in the Mid West. Fenix, Athena’s largest shareholder, have the regional logistics solutions and balance sheet to support future project development and management of a green iron project.”

Green iron is produced by using hydrogen instead of coking coal to reduce iron-ore, a process that can cut emissions by up to 90% compared to traditional steelmaking methods. The Mid West region, with its rich magnetite resources and high wind and solar potential, has been identified as a strategic location for this emerging sector.

The project will unfold in three phases, beginning with the validation of hydrogen reduction technologies using magnetite concentrate samples from Athena’s Byro magnetite project. This initial phase, which is expected to be completed by the end of 2026, is not anticipated to require significant capital investment and will run in parallel with the individual development plans of each partner.

Pending successful technical results, the group plans to construct a demonstration plant in the Mid West to test downstream processing. The pilot facility is expected to be modular and accessible to multiple users, with potential support from government and private partners. If the demonstration phase proves economically viable, the venture will progress to commercial-scale green iron production. Ownership structures at this stage remain flexible, with the possibility of additional stakeholders joining the project.

Athena’s Byro magnetite project is located in the Murchison province, about 340 km northeast of Geraldton. The FE1 deposit within the project hosts a whole rock mineral resource of 29.3-million tonnes at 24.7% iron, including a magnetite resource of 21-million tonnes grading 70.7% iron, based on a Davis Tube Recovery (DTR) cut-off of 20%.

“Athena’s primary focus remains the development of the company’s 100% owned high-quality Byro magnetite project,” Jones said. “Partnering on local green iron opportunities is an obvious opportunity for Athena to develop a future high value market for our iron products in addition to the obvious export opportunities.”

The project partners will conduct further technical studies and consider securing access to key project inputs such as land, power, hydrogen, transport and water. The group also intends to advocate for favourable policies and identify funding opportunities to support development.

Fenix, which owns a 37.2% stake in Athena, operates three iron-ore mines in the region and aims to produce four-million tonnes of iron-ore in 2025. Through its Newhaul logistics arm, Fenix controls road transport and port infrastructure in Geraldton, including storage capacity of over 400 000 t and loading capacity or more than 5-million tonnes a year.

Warradarge Energy is developing a 1 GW green hydrogen project supported by 1.5 GW of wind and solar capacity. The facility is expected to supply the majority of the hydrogen required for the green iron reduction process.

With global steel production responsible for roughly 8% of yearly carbon emissions, hydrogen-based ironmaking is seen as a key lever in decarbonising heavy industry. Australia’s abundant renewable resources and magnetite deposits position it as a potential leader in the green steel supply chain.