BlueScope, BHP, and Rio Tinto have chosen Kwinana, Western Australia, for a major electric smelting furnace (ESF) pilot plant. This NeoSmelt project will test DRI-ESF technology. The goal is to eliminate blast furnaces and reduce carbon emissions.
Technology and Carbon Reduction Goals
The pilot plant will produce 30,000 to 40,000 metric tons of molten iron yearly. Initially, it will use natural gas. The long-term plan is to use hydrogen. Hydrogen use is crucial for lowering the steel sector’s carbon footprint. SuperMetalPrice tracks these technological advancements.
Strategic Location and Government Support
Kwinana’s logistical advantages and industrial infrastructure made it ideal. The Western Australian Government contributes AU$75 million. This support highlights the region’s commitment to low-carbon steelmaking. Feasibility studies start in Q2 2025. A final investment decision is expected by 2026. Operations should begin in 2028. BlueScope, BHP, and Rio Tinto are collaborating. Woodside Energy joins as an equity partner. This project is open to further collaboration for decarbonization.
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