BlueScope Steel Join Forces with Rio Tinto and BHP to Develop ‘Green Iron’ Plant

SEATTLE (Scrap Monster): BlueScope Steel will build a low-carbon iron production furnace in partnership with Rio Tinto and BHP, two of the top iron ore miners. The Kwinana Industrial Area, south of Perth, Australia, is where the projected ironmaking electric smelting furnace (ESF) pilot facility will be situated.

The goal of the NeoSmelt project is to build a prototype plant that can produce between 30,000 and 40,000 tonnes of molten iron annually. Iron ore will first be reduced to DRI at the plant using natural gas. But once it is up and running, the facility will convert iron ore using hydrogen, which emits fewer carbon emissions. It is predicted that the technique will cut emissions by up to 80% when combined with green hydrogen and renewable energy. It is anticipated that if the pilot project is successful, steel production will reach net-zero emissions.

In addition to increasing their reliance on Australian iron ore, the initiative will assist steelmakers globally in lowering their carbon impact. In Q2 of next year, it expects feasibility studies to progress. Operations are anticipated to start in 2028, with a final investment decision anticipated in 2026.

It is anticipated that Woodside Energy will also become an equity partner in the partnership. The business will supply the electricity for the project.

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