ASX iron ore producers join hand to decarbonise steelmaking

Australia's top iron ore producers, Rio Tinto and BHP, along with the leading steelmaker BlueScope (ASX: BSL), have entered a groundbreaking partnership aimed at advancing the decarbonisation of steelmaking. This collaboration involves the joint investigation of Australia's first ironmaking Electric Smelting Furnace (ESF) pilot plant.

Purpose of the Agreement

The primary goal of this collaboration is to expedite the transition to more sustainable steelmaking practices by exploring innovative technologies. The framework agreement outlines the commitment of Rio Tinto, BHP, and BlueScope to consolidate their efforts in this transformative journey.

Development of Ironmaking ESF Pilot Plant

Under the framework agreement, the parties will explore the establishment of a pilot plant for ironmaking ESF. This pilot facility aims to demonstrate the feasibility of producing molten iron from Pilbara ores using renewable power, combined with the Direct Reduced Iron (DRI) process technology.

Consolidation of Efforts

The collaboration capitalizes on the extensive knowledge possessed by each party, combining BHP's and Rio Tinto's expertise in Pilbara iron ores with BlueScope's unique operational experience in ESF technology.

Potential of Renewable Power

The project seeks to showcase that renewable power, coupled with DRI process technology, can effectively produce molten iron from Pilbara ores. If successful, this could pave the way for near-zero greenhouse gas emission-intensity operations for steelmakers relying on Australian iron ore.

Pathway to Near-Zero Greenhouse Gas Emissions

The initiative aligns with the global push towards sustainable practices, providing a potential solution for steelmakers to achieve near-zero greenhouse gas emission-intensity operations while meeting the demands of global steel production.

Assessment of Locations

Several locations in Australia will be evaluated for the proposed pilot facility. Factors such as supporting infrastructure, workforce availability, industry access, and suitability for operational trials will be considered. The pre-feasibility study work program is set to conclude at the end of the year.

Pre-feasibility Study Work Program

The detailed pre-feasibility study will play a crucial role in determining the viability of the pilot facility. The conclusion of the work program is expected by the end of the year, and if approved, the pilot facility could be commissioned as early as 2027.

Commissioning Timeline

If the project receives approval, the pilot facility could mark its commissioning as early as 2027, signifying a tangible step toward implementing sustainable steelmaking practices.

Statements from Key Executives

Key executives, including Rio Tinto Iron Ore Chief Executive Simon Trott, BHP WAIO Asset President Tim Day, and BlueScope Chief Executive Australia Tania Archibald, share their perspectives on the collaboration and its potential impact.

Importance of Collaboration in Decarbonisation

The collaborative approach highlights the importance of industry-wide cooperation in achieving breakthroughs in sustainable technologies. Rio Tinto emphasizes leveraging over two years of collaborative work with BlueScope, underlining the necessity of joint efforts to address large-scale challenges.

Technological Breakthrough and Carbon Emission Reduction

The agreement represents a commitment to driving profound change in the carbon intensity of iron and steelmaking. The collaboration aims to contribute to meeting global climate objectives by finding better ways to enable more sustainable production methods.

Vision for a Sustainable Future

Executives express their shared vision for a low greenhouse gas emission future, emphasizing the need for innovative technologies to support the evolving needs of the planet. The collaboration aligns with efforts to accelerate decarbonisation targets across industries.

DRI Technology and ESF Development

BlueScope identifies Direct Reduced Iron (DRI) technology as a prospective solution for decarbonising its Australian business. The development of ESF technology is considered crucial in unlocking Australia's unique advantages in the decarbonisation journey.

Global Adaptation of ESF Technology

The collaboration not only focuses on local impact but also envisions the global adaptation of ESF technology. The potential widespread use of this technology across the steel industry could contribute significantly to reducing carbon emissions on a global scale.

Unique Contribution of BlueScope's Experience

BlueScope's experience in operating an ESF is deemed essential in cracking the code for Pilbara ores in low emission-intensity ironmaking. The collaboration acknowledges the unique insights and operational knowledge that BlueScope brings to the table.

Conclusion

In conclusion, the collaboration between Rio Tinto, BHP, and BlueScope marks a pivotal moment in the quest for sustainable steelmaking. The joint effort aims to revolutionize the industry by exploring new technologies, providing hope for a future with low emission-intensity ironmaking practices.