Extract from ABC News
Australia's biggest steelmaker and the nation's largest iron ore producers have announced a new collaboration aimed to create a pathway to decarbonise steel production.
Miners Rio Tinto and BHP sent teams from their Pilbara operations to join BlueScope at its Port Kembla terminal on Friday to make the announcement.
Faced with the risk of falling behind the global effort to decarbonise, the iron ore competitors and the steelmaker have been exploring the development of an electric smelting furnace for iron-making.
BlueScope chief executive Australia Tania Archibald said it was necessary to establish a commercially viable alternative to blast furnace. steelmaking.
"This is a major opportunity for Australia on a global scale as the broader steel industry seek to decarbonise," Ms Archibald said.
The project faces many challenges aside from the technology development; it will also be dependent on securing a substantial gas supply and, ultimately, green hydrogen.
More than 70 per cent of global steel is produced using blast furnaces, around 20 per cent through electric arc furnaces and around five per cent as Direct Reduced Iron (DRI).
DRI is seen as the most promising pathway to decarbonise iron and steelmaking.
In the DRI process, gas and ultimately green hydrogen replace coal.
BlueScope believed natural gas-based DRI could reduce steelmaking emissions by around 60 per cent, while green hydrogen-based DRI would take the process towards zero.
DRI technology is also dependent on high-grade ores and Australia's ore supply in the Pilbara is disadvantaged by high levels of impurities.
Ms Archibald said the three companies would work together in attempt to find a way to process the low and medium-grade ores.
"The challenge is to evolve the technology to unlock the ability to consume Australia's abundant Pilbara ores in the DRI process," she said.
"This is really about how we crack the code with using the Pilbara ores in a DRI process."
She said the collaboration was critically important for BlueScope's net zero 2050 goal.
Future proofing the Pilbara
Iron ore is Australia's biggest export, and Rio Tinto Iron Ore chief executive Simon Trott said the announcement was key to securing the industries into the long term.
"We need to ensure that iron ore from Australia is well positioned for a green steel future," Mr Trott said.
"Today is about making sure that that continues in the decades to come."
Incoming BHP Western Australia iron ore asset president Tim Day said the project was critical for Australia.
"If we can crack it, it is actually going to be a significant uptick for the mining industry, the Pilbara, Western Australia and Australia in general and the globe," Mr Day said.
The steelmaker said a key advantage for the project would be adapting technology from its electric smelting furnace processing DRI in New Zealand.
Port Kembla a possible site
Locations around the country will be considered, including BlueScope's Port Kembla steel mill.
The companies said the cost was not resolved and would be shared equally amongst the partners, with the project also designed to allow additional partners including the federal government.
The companies believed the pilot facility could be commissioned by 2027.
The announcement comes only a week after the federal government provided the steelmaker with a $137 million grant to help with the $1.15 billion reline of its No.6 blast furnace.
BlueScope has previously said it needed to proceed with the reline to transition to green steel.
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