NeoSmelt, a consortium of leading resources, energy and manufacturing companies working on ways to produce lower-emissions steel from Pilbara iron ore, welcomes Australian Renewable Energy Agency (ARENA) support for its planned Western Australian pilot plant.

The consortium, founded by BlueScope, BHP and Rio Tinto, also welcomes two new equity participants – Woodside Energy and Mitsui Iron Ore Development – to the NeoSmelt proect, with the five participants taking equal equity stakes in the joint venture. NeoSmelt, which is managed by BlueScope, plans to develop Australia’s largest ironmaking electric smelting furnace (ESF) pilot plant at the Kwinana Industrial Area, south of Perth, to demonstrate a method to produce lower-carbon emissions molten iron from Western Australian iron ore.

ARENA has committed $19.8 million to support a Front-End Engineering Design (FEED) study for the NeoSmelt project, which aims to prove Pilbara iron ore can be used to produce lower-carbon iron using a direct reduced iron – electric smelting furnace (DRI-ESF) pathway. If successful, this has the potential to unlock longer term alternatives to the traditional blast furnace steelmaking route and help ensure the longevity of Australia’s iron ore industry.

The project has now entered the feasibility phase. The feasibility study will help inform a final investment decision, expected in 2026. BlueScope Chief Executive Australia, Tania Archibald, on behalf of the Joint Venture said: “Today marks a significant step forward in developing a technology for lower-carbon emissions steelmaking using Pilbara ore, and we’re delighted by ARENA’s $19.8 million commitment to support the feasibility phase of this groundbreaking R&D pilot plant.

“With this backing from government and industry leaders, we now have the opportunity to develop world leading technology that will have potential application across the global steel industry and provides the foundation for a future Australian lower-carbon emissions iron export industry.” If approved, operations at the NeoSmelt pilot plant, which is expected to produce 30,000 to 40,000 tonnes of molten iron a year, are planned to begin in 2028.