The Kwinana Industrial Area, in Western Australia, has been selected as the location for Australia’s largest ironmaking electric smelting furnace (ESF) pilot plant.

The project combines the expertise of manufacturer BlueScope and diversified miners BHP and Rio Tinto to test technology to enable the use of the Pilbara iron-ore to produce iron without the need for traditional blast furnaces using direct reduced iron- (DRI-) ESF technology.

The pilot plant is expected to produce between 30 000 t/y and 40 000 t/y of molten iron. It will initially use natural gas to reduce iron-ore to DRI, but once operational, the project aims to use lower-carbon emissions hydrogen to reduce iron-ore.

The companies formed the NeoSmelt collaboration in February, combining BHP and Rio Tinto’s deep knowledge of Pilbara iron-ore, with BlueScope’s unique operating experience in ESF technology.

The NeoSmelt parties also announced that Australian petroleum exploration and production company Woodside Energy will join the consortium as an equal equity participant and energy supplier, subject to finalising commercial arrangements.

If successful, NeoSmelt has the potential to open a pathway to near-zero emissions steelmaking using Pilbara iron-ore and ensure the longevity of Australia's iron-ore industry.

The NeoSmelt parties assessed several pilot plant locations in Australia before selecting the Kwinana Industrial Area, using its access to transport logistics and existing infrastructure, coupled with support from a A$75-million contribution from the Western Australian government.

Subject to funding, a decision to enter feasibility studies is expected to be made in the second quarter of 2025, with a final investment decision (FID) for the pilot plant targeted for 2026, with operations slated to begin in 2028.

The NeoSmelt project remains open for collaboration with other parties that complement its objectives, the companies reported.

Western Australia Premier Roger Cook says that, under the Western Australia Labour government, the state is becoming a global renewable-energy powerhouse, “creating the jobs of the future and setting up our economy for the long term”.

He adds that securing NeoSmelt for Kwinana positions Western Australia at the cutting edge of the global push to slash emissions from steel production and means that the Pilbara iron-ore will be processed in the state.

“Putting the global steel industry on the pathway to near-zero emissions mean more jobs in processing in Western Australia, and a strong future for [the state’s] iron-ore industry,” Cook notes.

BlueScope CE Australia Tania Archibald adds that the development marks a significant milestone in what is “truly a unique and transformative project” to help decarbonise the steel industry.