Australia is taking a major step toward decarbonizing its steel industry. The Australian Renewable Energy Agency (ARENA) has committed A$44.9 million in funding to support Calix, Australian innovator in sustainable high-temperature mineral processing, in building a demonstration plant powered by renewable electricity and hydrogen.
The plant will utilize Calix’ Zero Emissions Steel Technology (ZESTY) and aims to annually produce up to 30,000 mt of low-carbon hydrogen direct reduced iron (HDRI) and hot briquetted iron (HBI). This aligns with national goals to strengthen local capabilities in low-emissions metal production.
The funding not only enables the pilot facility but also supports early engineering studies for a commercial-scale ZESTY plant, setting the stage for Australia to lead in low-emissions metals.
Stating that production is a major source of global carbon emissions, Darren Miller, CEO of ARENA, said, “What makes ZESTY so compelling is its potential to dramatically lower the amount of hydrogen required to convert iron ore into pure iron. ZESTY, in combination with use of renewable electricity from Australia’s world-class solar and wind resources, has the potential to create a new green iron industry targeting both domestic and export markets as the world transitions away from fossil fuels.”