Australia's two largest iron ore producers and the country's biggest steelmaker announced a partnership on Friday to develop the country's first ironmaking electric smelting furnace (ESF) pilot plant in order to decarbonize steelmaking.
Under the framework agreement, Rio Tinto and BHP will combine their knowledge of iron ore production with BlueScope's operating experience in ESF technology.
The collaboration provides a platform to develop and potentially invest in a pilot facility, with the aim of demonstrating that production of molten iron is feasible using renewable power when combined with direct reduced iron (DRI) process technology.
If successful, the project could revolutionize a sector known for its high emission levels and open the door to near-zero greenhouse gas emission-intensity operations for steelmakers.
'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 companies agreed.
The pre-feasibility study work program is expected to conclude by the end of the year. If approved, the pilot facility could be commissioned as early as 2027.
'We must find better ways to enable these materials to be made more sustainably through leveraging technology,' said Simon Trott, Rio Tinto iron ore chief executive.
By Zeynep Beyza Kilic
Anadolu Agency
energy@aa.com.tr