NeoSmelt, a consortium founded by Australia’s leading companies BlueScope, Rio Tinto and BHP, has received a funding support from the Australian Renewable Energy Agency (ARENA) for its planned pilot plant in Western Australia for low-carbon ironmaking, according to a joint statement released by the partners.
Meanwhile, Australia-based oil and gas company Woodside Energy and Mitsui Iron Ore Development, the Australian subsidiary of Japan-based Mitsui & Co., Ltd., have also joined the consortium. All partners will hold an equal equity stake in the project.
Accordingly, ARENA has allocated A$19.8 million to support the front-end engineering design study of NeoSmelt. Under the project, the partners plan to build Australia’s largest electric smelting furnace pilot plant at the Kwinana industrial area, aiming to demonstrate that Pilbara iron ore can be used to produce low-carbon iron through direct reduced iron (DRI)-electric smelting furnace method.
Currently in the feasibility phase, the project has the potential to provide an alternative to the traditional steelmaking and help decarbonize the global iron and steel industry if successful. The feasibility study will help the partners to make a final investment decision in 2026.
