Australia’s leading iron ore producers partner with BlueScope on steel decarbonisation
February 08 2024 - 6:00PM
Business Wire
Australia’s two largest iron ore producers and its biggest
steelmaker have partnered in their efforts to accelerate the
decarbonisation of steelmaking by agreeing to jointly investigate
the development of the country’s first ironmaking Electric Smelting
Furnace1 (ESF) pilot plant.
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Under a new framework agreement, Rio Tinto, BHP and BlueScope
will consolidate the work each party has completed to date,
leveraging both BHP’s and Rio Tinto’s deep knowledge of Pilbara
iron ores with BlueScope’s unique operating experience in ESF
technology.
The collaboration provides a platform to develop and potentially
invest in a pilot facility and aims to demonstrate that production
of molten iron from Pilbara ores is feasible using renewable power
when combined with Direct Reduced Iron (DRI) process technology. If
successful, it could help open a potential pathway to near-zero
greenhouse gas emission-intensity operations for steelmakers that
rely on Australian iron ore to meet global steel demand.
The parties will assess several locations in Australia for the
proposed pilot facility, and will consider factors like supporting
infrastructure, available workforce, access to target industry and
supply chain partners, and suitability for operational trials. The
pre-feasibility study work program is expected to conclude at
year-end. If approved, the pilot facility could be commissioned as
early as 2027.
Rio Tinto Iron Ore Chief Executive Simon Trott said: “The carbon
intensity of iron and steelmaking requires profound change to meet
the needs of our planet and our climate objectives. We must find
better ways to enable these materials to be made more sustainably
through leveraging technology.
“We firmly believe the best way to tackle a challenge of this
scale is through collaboration with industry and importantly this
new agreement will leverage the more than two years of work we have
already completed with BlueScope on this technology. This
partnership will benefit from Rio Tinto’s and BHP’s unrivalled
experience of Pilbara ores as well as the technical steelmaking
capability and unique operating knowledge of BlueScope. We are
excited to add this partnership to the suite of projects we have
underway with our customers and suppliers to find better ways to
accelerate their efforts to meet their decarbonisation
targets.”
Incoming BHP Western Australia Iron Ore (WAIO) Asset President
Tim Day said: “We are thrilled to partner with Rio Tinto and
BlueScope to progress what we see as a potential breakthrough in
reducing carbon emissions from steel production. Collaborations
like this are so important for the success of these technologies
and build on our work on blast furnace abatement projects, and our
ongoing research and development projects with leading steelmakers,
research institutes and technology providers around the world.
“Combining our expertise, we hope to help fast track near-zero
emission-intensity pathways for steelmakers using Pilbara ores.
Technology pathways compatible with renewable energy and scalable
to the order of hundreds of millions of tonnes of steel production
would be a major step forward in setting up Pilbara ores, and the
world, for a low greenhouse gas emission future.”
BlueScope Chief Executive Australia Tania Archibald said: “We
have a clear vision for BlueScope in Australia as a vibrant, modern
and sustainable manufacturer with a clear role to play in enabling
Australia’s energy transition. Building a pathway to low
emission-intensity iron and steelmaking in Australia is a key
priority for our business. We’re excited to be partnering with Rio
Tinto and BHP to explore the decarbonisation of the ironmaking
process, and leverage the natural advantages of Australia – namely
our iron ore resources and the abundant potential for renewable
energy.
“We believe DRI is the most prospective technology to
decarbonise our Australian business, and the development of ESF
technology is key to unlocking Australia’s unique advantages in
this decarbonisation journey – and, more importantly, has the
potential for wider adaptation across the global steel industry. We
believe that this collaboration where we can contribute BlueScope’s
unique experience in operating an ESF will be key to cracking the
code for Pilbara ores in low emission-intensity ironmaking.”
[1] Also known in the industry as an ‘electric melter’
Notes to editors
Pilot Electric Smelting Facility
A pilot facility would be intended to test and optimise
production of iron from the ESF, a type of furnace being developed
by leading steel producers and technology companies targeting low
CO2 emission-intensity steel. The ESF is capable of producing iron
suitable for the basic oxygen steelmaking (BOS) process. Iron ore
is first converted to direct reduced iron (DRI) before being
charged into the ESF. Together, the DRI-ESF equipment can replace
the blast furnace, eliminating the need for metallurgical coal.
Estimates show that reductions of more than 80 per cent in CO2
emission intensity are potentially achievable processing Pilbara
iron ores through a DRI-ESF pathway, compared with the current
industry average for the conventional blast furnace steel
route.
Other lower CO2 emission-intensity production routes, such as
electric arc furnaces, require scrap steel and DRI produced from
high grade iron ores. The ESF allows for greater flexibility in
input raw materials, addressing one of the key barriers to wider
adoption of low carbon emissions technology. The ESF also has the
potential to be integrated into a steel plant’s existing downstream
production units.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240208336141/en/
BlueScope Michael Reay M +61437 862 472 E
Michael.Reay@bluescope.com
BHP Jimmy Clothier M +61413391031 E
jimmy.clothier@bhp.com
Rio Tinto Jesse Riseborough M +61436653412 E
media.enquiries@riotinto.com
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