Australian iron ore producers, BlueScope partner on steel decarbonization

Australia’s two largest iron ore producers, Rio Tinto and BHP, and steelmaker BlueScope Steel Ltd. have partnered in an effort to accelerate the decarbonization of steelmaking by agreeing to jointly investigate the development of the country’s first ironmaking electric smelting furnace (ESF) pilot plant.

Under a new framework agreement, the companies will consolidate the work each has completed to date, leveraging both BHP’s and Rio Tinto’s deep knowledge of Pilbara iron ores with BlueScope’s operating experience in ESF technology.

RELATED: Rio Tinto demo project yields ferrous scrap bounty

The companies say the collaboration provides a platform to develop and potentially invest in a pilot facility and aims to demonstrate that production of molten iron from Pilbara ores is feasible using renewable power when combined with direct reduced iron (DRI) process technology. If successful, it could help open a potential pathway to near-zero greenhouse gas emission-intensity operations for steelmakers that rely on Australian iron ore to meet global steel demand.

The partners will assess several locations in Australia for the proposed pilot facility and consider factors such as supporting infrastructure, available workforce, access to target industry and supply chain partners and suitability for operational trials. The pre-feasibility study work program is expected to conclude by the end of this year, according to the companies. If approved, the pilot facility could be commissioned as early as 2027.

“The carbon intensity of iron and steelmaking requires profound change to meet the needs of our planet and our climate objectives," Rio Tinto Iron Ore Chief Executive Simon Trott says in a news release. "We must find better ways to enable these materials to be made more sustainably through leveraging technology.

“We firmly believe the best way to tackle a challenge of this scale is through collaboration with industry and, importantly, this new agreement will leverage the more than two years of work we have already completed with BlueScope on this technology. This partnership will benefit from Rio Tinto’s and BHP’s unrivaled experience of Pilbara ores as well as the technical steelmaking capability and unique operating knowledge of BlueScope. We are excited to add this partnership to the suite of projects we have underway with our customers and suppliers to find better ways to accelerate their efforts to meet their decarbonization targets.”

Incoming BHP Western Australia Iron Ore (WAIO) Asset President Tim Day says his company is thrilled to partner with Rio Tinto and BlueScope to progress what it sees as a potential breakthrough in reducing carbon emissions from steel production. “Collaboration like this is so important for the success of these technologies and build on our work on blast furnace abatement projects, and our ongoing research and development projects with leading steelmakers, research institutes and technology providers around the world," he says.

RELATED: BlueScope commits to New Zealand EAF mill

“We have a clear vision for BlueScope in Australia as a vibrant, modern and sustainable manufacturer with a clear role to play in enabling Australia’s energy transition," BlueScope Chief Executive Australia Tania Archibald adds. "Building a pathway to low emission-intensity iron and steelmaking in Australia is a key priority for our business. We’re excited to be partnering with Rio Tinto and BHP to explore the decarbonization of the ironmaking process and leverage the natural advantages of Australia—namely our iron ore resources and the abundant potential for renewable energy.

“We believe DRI is the most prospective technology to decarbonize our Australian business, and the development of ESF technology is key to unlocking Australia’s unique advantages in the decarbonization journey. More importantly, it has the potential for wider adaptation across the global steel industry. We believe that this collaboration where we can contribute BlueScope’s unique experience in operating an ESF will be key to cracking the code for Pilbara ores in low emission-intensity ironmaking.”