NeoSmelt JV Secures $19.8M Federal Support for WA Low-Carbon Steel Pilot

The NeoSmelt joint venture, comprising BlueScope, BHP, Rio Tinto, Woodside Energy, and Mitsui Iron Ore Development, has received A$19.8 million from the Australian Renewable Energy Agency (ARENA) to support a front-end engineering design study for Australia's largest electric smelting furnace pilot plant in Kwinana, Western Australia. This pilot aims to produce molten iron from Pilbara ore with significantly lower carbon emissions by using a direct reduced iron-electric smelting furnace (DRI-ESF) process, which could transform steelmaking by reducing emissions by up to 2 tonnes of CO2 per tonne of steel produced. The project, managed by BlueScope, has entered the feasibility phase, with a final investment decision expected in 2026 and operations projected to start in 2028, initially using natural gas but targeting hydrogen for long-term decarbonization. The initiative is backed by government and industry leaders, including a previous A$75 million contribution from the Western Australian Government, and aims to offer a lower-carbon alternative to traditional blast furnace steelmaking, supporting the longevity and sustainability of Australia's iron ore industry. Officials emphasize the project's potential global impact on steel production and its role in advancing the energy transition by significantly cutting emissions in one of the world's most emissions-intensive sectors. The addition of Woodside Energy and Mitsui to the joint venture strengthens the consortium’s capacity to develop this technology with potential worldwide application.