BlueScope, BHP, and Rio Tinto Pick WA for Major Ironmaking Furnace Pilot

BlueScope, BHP, and Rio Tinto have selected the Kwinana Industrial Area, located south of Perth, as the site for Australia’s largest ironmaking electric smelting furnace (ESF) pilot plant. This pioneering project is a major step toward decarbonising the steelmaking industry, aiming to demonstrate new technologies that will enable the use of Pilbara iron ore to produce iron without relying on traditional blast furnaces. By replacing conventional methods with more sustainable processes, this initiative hopes to significantly reduce carbon emissions from one of the world’s most carbon-intensive industries.

The NeoSmelt collaboration unites the combined expertise of BlueScope, BHP, and Rio Tinto. BHP and Rio Tinto bring deep knowledge of Pilbara iron ore, while BlueScope offers its experience in electric smelting furnace technology. This strategic partnership has now been expanded to include Woodside Energy, which will join as an equal equity participant and energy supplier, subject to finalising commercial arrangements. Woodside’s involvement is particularly significant as it will provide critical energy solutions for the project, contributing to efforts to decarbonise steelmaking.

The primary goal of the pilot plant is to demonstrate that Pilbara iron ore can be successfully processed into lower-carbon molten iron using direct reduced iron (DRI) technology in combination with electric smelting furnaces. Initially, the pilot plant will use natural gas to reduce iron ore to DRI, but the long-term vision is to switch to hydrogen as a cleaner alternative. By incorporating hydrogen, the project aims to drastically lower carbon emissions in the ironmaking process. If successful, the NeoSmelt initiative could unlock a path to near-zero emissions steelmaking, helping to secure the long-term viability of Australia’s iron ore industry in an increasingly environmentally conscious global market.

The Kwinana location was carefully chosen due to its strategic advantages, including easy access to transport logistics, established infrastructure, and the support from the Western Australian Government, which has contributed A$75 million to the project. The pilot plant’s feasibility studies are expected to commence in the second quarter of 2025, with a final investment decision scheduled for 2026. Operations are projected to begin by 2028, marking a significant milestone in the global effort to decarbonise the steel industry.

BlueScope’s Chief Executive Australia, Tania Archibald, expressed pride in the project, calling it a transformative step toward decarbonising steel production. She noted that BlueScope’s role as project manager draws on the company’s extensive experience in iron and steelmaking, particularly from its operations at the Port Kembla Steelworks and New Zealand’s electric smelting furnace technology. BHP’s Tim Day and Rio Tinto’s Simon Trott both echoed Archibald’s sentiments, highlighting the project’s potential to revolutionise low-emissions steelmaking and set a global benchmark.

Woodside Energy’s Executive Vice President & Chief Operating Officer Australia, Liz Westcott, shared her excitement about the company’s involvement in the project, noting that Woodside’s expertise in energy solutions, particularly with natural gas and hydrogen, will play a vital role in the success of the NeoSmelt initiative. She emphasised the importance of unlocking new pathways for lower-emission steel production.

This ambitious project represents a significant leap forward for Australia’s mining and steel industries and is expected to have far-reaching implications for both the national and global push for cleaner, more sustainable industrial practices. With the backing of key industry players, government support, and a strong focus on innovation, the NeoSmelt project is poised to help shape the future of steel production in Australia and beyond.