Australian-made green metals get $19.8m investment
The federal government is investing in the future of Australian-made green metals with a $19.8 million grant to develop the production of low-emissions iron using Pilbara iron ore in Kwinana, WA.
Funding will support a $48.8 million Front-End Engineering Design study for the NeoSmelt project, which is working towards replacing the traditional blast furnace steelmaking route by developing an electric smelting furnace to make low-emissions iron.
The steel industry accounts for 7% of global energy demand and generates 7–9% of carbon dioxide emissions. Currently, around 70% of steel is produced using energy-intensive and high-emission methods.
The electric smelting furnace (known as ESF) is a technological advance that could reduce emissions by as much as two tonnes of carbon dioxide per tonne of steel produced. The innovation would cut emissions by millions of tonnes of carbon dioxide each year if rolled out Australia-wide.
NeoSmelt is a joint venture between BlueScope, BHP, Rio Tinto, Woodside Energy and Mitsui Iron Ore Development.
“As the biggest iron ore producer in the world, every effort we make towards cutting emissions here at home has far-reaching benefits,” said Assistant Minister for Climate Change and Energy Josh Wilson. “This project is a fantastic example of how the Albanese government is helping Australian industries to make the biggest economic shift since the Industrial Revolution while securing Australian jobs, Australian-made products and Australia’s net-zero future.”
It is claimed the Kwinana facility will be Australia’s largest ironmaking electric smelting furnace pilot plant. The project is expected to generate up to 100 full-time equivalent roles during operations, potentially peaking at 300 during construction phase.
A final investment decision is expected in 2026, with operations at Kwinana planned to begin in 2028.
Member for Brand Madeleine King said, “The fuels, metals, fertiliser, chemicals and grain shipped from Kwinana have powered Western Australia and the region since the 1950s.
“Kwinana is now playing a central role in the world’s energy transition and a big part in global efforts to decarbonise.
“If we can decarbonise steelmaking, we will create far fewer emissions when building the cities of the world.”
The funding for NeoSmelt is being delivered through the Australian Renewable Energy Agency (ARENA) from the $400 million Industrial Transformation Stream of the government’s $1.9 billion Powering the Regions Fund.
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