Global mining and metals company Rio Tinto has announced a collaboration with Australian environmental technology firm Calix, committing over A$35 million (USD$23 million) to support the construction of a pioneering green iron demonstration plant. This facility will utilise electric heating and hydrogen reduction methods to aid the decarbonisation of steelmaking.
In conjunction with this agreement, Rio Tinto will pause its BioIron project. This initiative was aimed at testing a novel technology to replace coal with biomass, facilitating a low-carbon ironmaking process. Steel manufacturing is a significant contributor to global CO2 emissions, responsible for 7% to 9% of direct emissions from fossil fuel use. As global manufacturers strive to decarbonise supply chains, the demand for steel produced with fossil-free energy is expected to rise substantially.
Last year, Rio Tinto revealed plans for a BioIron research and development facility and pilot plant, projected to cost A$215 million. The BioIron technique employs raw biomass and microwave energy instead of coal to convert Pilbara iron ore into metallic iron. This involves mixing iron ore fines with raw biomass, such as agricultural waste, and heating it using a blend of gas released by the biomass and high-efficiency microwaves powered by renewable energy to produce metallic iron.
In its latest update, Rio Tinto confirmed its commitment to the long-term potential of BioIron technology, continuing research and development efforts. However, the company noted that further development of the current furnace design is necessary to reduce technical risks and enhance performance.
Rio Tinto Iron Ore Chief Executive Matthew Holcz stated, “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.”
The new investment will back the construction of Calix’s Zero Emissions Steel Technology, or “Zesty,” which combines electric heating and hydrogen reduction to produce green iron. According to the company, this approach offers the “lowest cost pathways to green iron and steel” by minimising hydrogen consumption, enabling the use of intermittent renewable energy sources, eliminating ore pelletisation, and allowing the use of fines and lower-grade iron ores.
The Zesty plant, to be built on the site originally intended for the BioIron facility, is planned to produce up to 30,000 tonnes annually of hydrogen direct reduced iron or hot briquetted iron from various iron ore sources. A final investment decision is anticipated by 2026. The project also benefits from a grant of up to $44.9 million from the Australian Renewable Energy Agency (ARENA), contingent on securing matched funding.
Under the agreement, Rio Tinto will support the Zesty project in reaching a Final Investment Decision through technical support, engineering services, and advocacy. Subject to project construction, Rio Tinto will supply up to 10,000 tonnes of Pilbara iron ores for plant commissioning and initial testing phases, as well as facilitate introductions to potential customers for downstream use of the Zesty product.
Calix Chief Executive Officer Phil Hodgson remarked, “The Joint Development Agreement with Rio Tinto is a major milestone in the commercialisation of Zesty. It provides cash and hands-on support, including industry-leading resources, expertise and market reach to progress the Zesty Demonstration project.”
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