BHP aims to slash steelmaking emissions by 80 per cent with electric smelting pilot plant

BHP will consider building a pilot electric smelter somewhere in Australia with a view to proving low-emissions steel can be made from Pilbara iron ore.

Traditional steelmaking is one of the world’s largest sources of greenhouse gas emissions.

BHP will consider building a pilot electric smelter somewhere in Australia as it seeks to deliver on the promise of low-emissions steel made from Pilbara iron ore.

The global resources company said on Thursday it had struck an agreement with engineering firm Hatch to design an electric smelting furnace (ESF) pilot “in support of a decision to construct this facility in Australia’’.

Moving steelmaking away from coking coal and natural gas to smelting using electricity and hydrogen is the holy grail for the steelmaking industry, however BHP says electric arc furnaces, which are touted as one potential solution, are best suited to process scrap steel and high grade direct reduced iron (DRI) only.

The goal for the ESF is to develop a process which has greater flexibility in terms of the feedstock,’’ BHP said.

“The ESF is capable of producing steel from iron ore using renewable electricity and hydrogen replacing coking coal, when combined with a direct reduced iron (DRI) step,’’ BHP said.

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“Estimates show that reductions of more than 80 per cent in carbon dioxide emission intensity are potentially achievable processing Pilbara iron ores through a DRI-ESF pathway, compared with the current industry average for the conventional blast furnace steel route.

“The pilot facility will enable deeper and more accurate insights into the performance of this technology for converting iron ores into molten iron and steel.’’

Steelmaking accounts for about 7-10 per cent of global greenhouse gas emissions, and the steel industry broadly is working towards using electricity and hydrogen-based options in a bid to reduce this.

For example Sanjeev Gupta’s GFG Alliance, which owns the Whyalla steelworks in South Australia, is aiming to be carbon neutral across its steelmaking operations by 2030 under its Greensteel/CN30 plans.

In order to facilitate this, GFG is working to expand its magnetite iron ore mining operations near Whyalla, with the company planning to use magnetite concentrate in its DRI process.

The DRI pathway involves reducing iron ore to iron at temperatures below its melting point.

This can be done using a hydrogen gas mix or traditional fossil fuels such as natural gas or coal.

BHP said it would work with Hatch to assess several possible locations for the pilot plant and it is understood that design and construction would take about two years, with commissioning expected in 2025.

“The pilot facility will enable deeper and more accurate insights into the performance of this technology for converting iron ores into molten iron and steel,’’ BHP said.

“Planned test programs will help de-risk further investment in commercial scale projects, thereby complementing development plans of BHP’s steel customers.’’

BHP chief commercial officer Vandita Pant said the company saw the ESF process as “a critical breakthrough in significantly reducing the carbon emissions intensity of steel production and one that provides an opportunity for iron ore from our Pilbara mines’’.

“The steel industry has identified the ESF as a viable option to use a wider range of raw materials and steel companies globally are looking to build commercial-scale ESF plants as part of their carbon dioxide emission reduction road maps.”

BHP said the ESF had the potential to be integrated into a steel plan’s existing downstream production units.

The cost of the program was not divulged.

Originally published as BHP aims to slash steelmaking emissions by 80 per cent with electric smelting pilot plant