Western Australia’s Environmental Protection Authority (EPA) has announced that it has given the green light to the Port Hedland Iron Project, a $4 billion investment that will build a pellet and hot briquetted iron (HBI) plant near Port of Port Hedland. The construction phase will take 2.5 years, and the project is expected to operate for over a century.
Project details and technology
The project will be located in the Boodarie Strategic Industrial Area, about 10 km southwest of Port Hedland, and will use MIDREX direct reduction technology. Unlike traditional blast furnaces that rely on coal, MIDREX uses natural gas, reducing greenhouse gas (GHG) emissions.
The project will include an iron ore processing facility consisting of a pellet plant and HBI plant that consume approximately 3-3.5 million mt of iron ore per year. Most of the pellets will be used by the HBI plant to produce about 2 million mt of HBI. The remaining pellets, about 700,000 mt, will be exported directly from Port Hedland. The project will also feature hydrogen production and storage facilities to supply the processing facility.
Hydrogen roadmap
Port Hedland Iron Pty Ltd has committed to progressively inject hydrogen into the process:
- 2029–2031: one percent hydrogen blending begins.
- 2048: increase to 90 percent hydrogen.
- Beyond 2049: 100 percent hydrogen operations.
This transition aims to fully decarbonize the process, aligning with global climate targets.
Backers and strategic significance
The project is supported by South Korea’s POSCO, Japan-based Marubeni and Taiwan’s China Steel Corporation, reflecting strong international backing.
According to EPA chairman Darren Walsh, using direct reduction technology and concentrating development within strategic industrial areas will not only reduce emissions but also support Western Australia’s hydrogen economy.
The project has the potential to more than double Australia’s iron ore export revenues, while positioning Port Hedland as a key hub for low-carbon steelmaking supply chains in Asia.