NeoSmelt Project: Transforming Steel Production in Western Australia
Key Ideas
  • BlueScope, BHP, and Rio Tinto collaborate to develop Australia's largest ironmaking electric smelting furnace pilot plant in Kwinana Industrial Area near Perth.
  • The project aims to use Pilbara iron ore to produce iron without traditional blast furnaces, potentially leading to near-zero emissions steelmaking.
  • Woodside Energy joins the consortium to supply energy and support the use of lower-carbon emissions hydrogen in the process.
  • The NeoSmelt project anticipates feasibility studies in 2025, with operations targeted to begin in 2028, contributing to job creation and the state's renewable energy goals.
Australia's leading iron ore miners and steelmaker have selected the Kwinana Industrial Area near Perth to establish a groundbreaking pilot plant for ironmaking electric smelting furnace (ESF). The NeoSmelt project, a collaboration between BlueScope, BHP, and Rio Tinto, aims to test technology that enables iron production using Pilbara iron ore without traditional blast furnaces, contributing to the decarbonisation of steelmaking. Woodside Energy will also join the consortium to provide energy supply for the project. The pilot plant's goal is to produce lower-carbon emissions molten iron using direct reduced iron (DRI)-ESF technology, with plans to transition to using hydrogen for reduced emissions once operational. Successful implementation of this project could revolutionize steel production with near-zero emissions. The project anticipates entering feasibility studies in 2025, targeting the final investment decision for the pilot plant in 2026 and operations starting in 2028. The initiative not only aims to reduce carbon intensity but also create job opportunities and support Western Australia's renewable energy objectives. The NeoSmelt project signifies a significant step towards sustainable steelmaking practices and underscores the commitment of industry leaders to address climate change concerns in the steel sector.
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