Steelmaker Bluescope is building a low-emission steel pilot plant in Port Kembla in conjunction with mining group Rio Tinto.
Under the MoU, the two companies will test low-emission steelmaking technologies, including direct hydrogen iron reduction technology that uses green hydrogen for direct ore reduction of iron. This iron will then be introduced into an electric furnace powered by renewable electricity.
This process is advertised as one of the few truly low-emitting steelmaking methods, but so far it has proven difficult to market. This requires new infrastructure and a huge amount of renewable energy to make the green hydrogen needed for direct reduction and to power the electric arc furnace, which is a big part of why the technology is so expensive.
The first phase will be to assess the potential of clean hydrogen and renewable electricity steelmaking, which will inform the scale of a pilot plant to be based at the Port Kembla steelworks.
The pilot plant will have a hydrogen electrolyser, direct reduction equipment and a smelter, with Rio Tinto supplying the majority of the iron ore for the pilot.
“This is an important program – one that will require broad support from governments, regulators, customers and suppliers,” said BlueScope Managing Director and CEO Mark Vassella.
“At a time of high talk and high expectations for decarbonisation, this is an example of two great Australian companies taking action. We are putting our money and our people on the front line to fight against climate change.
The work is part of BlueScope’s climate action fund of up to $150 million. Both companies have pledged to reach net zero by 2050.
