Rio Tinto, BHP and BlueScope have joined forces to investigate ways to decarbonise steelmaking

Australia’s two largest iron ore producers and our biggest steelmaker have joined forces in a bid to cut greenhouse gas emissions by investigating the development of the country’s first ironmaking electric smelting furnace pilot plant.

Australia’s two largest iron ore producers and its biggest steelmaker have partnered in their efforts to accelerate the decarbonisation of steelmaking by agreeing to jointly investigate the development of the country’s first ironmaking electric smelting furnace (ESF) pilot plant.

Under a new framework agreement, Rio Tinto, BHP and BlueScope will consolidate the work they have each completed to date, leveraging both BHP’s and Rio Tinto’s knowledge of Pilbara iron ores with BlueScope’s operating experience in ESF technology.

The collaboration provides a platform to develop and potentially invest in a pilot facility and aims to demonstrate that production of molten iron from Pilbara ores is feasible using renewable power when combined with Direct Reduced Iron (DRI) process technology.

If successful, it could help open a potential pathway to near-zero greenhouse gas emission-intensity operations for steelmakers that rely on Australian iron ore to meet global steel demand. Australia currently has an emissions target of 43 per cent below the 2005 levels by 2030.

Rio Tinto Iron Ore chief executive Simon Trott said the carbon intensity of iron and steelmaking required a profound change.

“We must find better ways to enable these materials to be made more sustainably through leveraging technology,” he said.

“We firmly believe the best way to tackle a challenge of this scale is through collaboration with industry and importantly this new agreement will leverage the more than two years of work we have already completed with BlueScope on this technology.”

Partnership to accelerate the decarbonisation of steelmaking.

The companies 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 pre-feasibility study work program is expected to conclude at year-end. If approved, the pilot facility could be commissioned as early as 2027.

BlueScope chief executive Australia Tania Archibald said they had a clear vision for the company as a “vibrant, modern and sustainable manufacturer” with a clear role to play in enabling Australia’s energy transition.

“Building a pathway to low emission-intensity iron and steelmaking in Australia is a key priority for our business,” she said.

“We’re excited to be partnering with Rio Tinto and BHP to explore the decarbonisation of the ironmaking process, and leverage the natural advantages of Australia – namely our iron ore resources and the abundant potential for renewable energy.”

Ms Archibald said that DRI was the most prospective technology to decarbonise Bluescope’s Australian business.

“The development of ESF technology is key to unlocking Australia’s unique advantages in this decarbonisation journey – and, more importantly, has the potential for wider adaptation across the global steel industry.

“We believe that this collaboration where we can contribute BlueScope’s unique experience in operating an ESF will be key to cracking the code for Pilbara ores in low emission-intensity ironmaking.”