Australia's NeoSmelt Project: Pioneering Near-Zero Emissions Steelmaking
Key Ideas
- Australia's largest ironmaking electric smelting furnace pilot plant is set to be developed in Kwinana, aiming to produce lower-carbon emissions molten iron using innovative technology.
- The project, led by BlueScope, BHP, and Rio Tinto, with the addition of Woodside Energy, aims to accelerate the decarbonisation of steelmaking and potentially lead to near-zero emissions steel production.
- The pilot plant will initially use natural gas for iron ore reduction but plans to transition to lower-carbon emissions hydrogen, showcasing a commitment to sustainable practices.
- The NeoSmelt project not only signifies a groundbreaking step towards sustainable steel production but also highlights the potential for job creation, skill development, and economic growth in Western Australia.
Australia's largest iron ore miners, steelmaker, and energy supplier have chosen Kwinana, south of Perth, as the location for developing a groundbreaking ironmaking electric smelting furnace (ESF) pilot plant. The NeoSmelt project, involving BlueScope, BHP, and Rio Tinto, aims to test technology enabling the use of Pilbara iron ore to produce iron without traditional blast furnaces, accelerating steelmaking decarbonisation. Woodside Energy will join as an equity participant and energy supplier. The pilot plant will demonstrate producing molten iron with reduced carbon emissions using direct reduced iron (DRI)-ESF technology. The project targets near-zero emissions steelmaking, potentially transforming the industry. The location's strategic selection in the Kwinana Industrial Area leverages existing infrastructure and government support. Successful feasibility studies in 2025 could lead to operations starting in 2028. The NeoSmelt project's collaboration with various stakeholders signifies a step towards a sustainable, low-carbon future for the steel industry.