Rio Tinto has signed a joint development agreement with Australian technology company Calix to support construction of Calix’s Zero Emissions Steel Technology (Zesty) demonstration plant in Western Australia.
The plant could enable iron made in Pilbara to be used in lower-emissions steel making.
Rio Tinto will invest more than AU$35 million, subject to project milestones and comprised of in-kind and financial contributions, to help Calix with the Zesty Green Iron Demonstration Plant, which also has support from the Australian Renewable Energy Agency (ARENA).
Under the terms of the agreement, Rio Tinto will support the Zesty project to reach a final investment decision through technical support, engineering services and advocacy.
Rio Tinto will supply up to 10,000 tonnes of a range of Pilbara iron ores for use in plant commissioning and for the initial testing phase of the project.
The Zesty process is compatible with lower grade iron ore and uses electric heating and hydrogen reduction to produce reduced-emissions iron.
Rio Tinto Iron Ore CEO Matthew Holcz said: “The world needs low-emissions steel if it is going to decarbonise, and we continue to look at a range of ways Pilbara iron ores can help to do this as new technologies emerge.”
If approved, the demonstration plant will be built at a site in Kwinana that was previously earmarked for Rio Tinto’s BioIron Research and Development Facility and associated pilot plant.
Rio Tinto remains committed to the long-term potential of Biolron technology and will continue its research and development in partnership with the University of Nottingham and sustainable technology company, Metso.
Western Australian Premier Roger Cook said: “Locally made green iron is a key part of my vision to become a renewable energy powerhouse and make more things here.
“Coupled with my government’s recent announcement that government will take an “if not, why not” approach to green steel procurement on major government projects, the Zesty Green Iron Demonstration Plant will support our efforts to diversify WA’s economy so that it can remain the strongest in the nation.”