AMSJ » BlueScope Shifts Green Iron Pilot Plant to WA After $75m Support Package
Emissions Reduction LATEST NEWS

BlueScope Shifts Green Iron Pilot Plant to WA After $75m Support Package

BlueScope Steel has opted for Western Australia for its green iron pilot plant due to a $75 million assistance package, prioritizing proximity to iron ore operations. The project, involving Woodside Energy, aims to create low-carbon steel and is expected to boost the local economy and job market significantly by 2028.

BlueScope Steel has chosen Western Australia over New South Wales for its major green iron pilot plant after WA offered a $75 million assistance package. The decision underscores the state’s advantage as an iron ore hub and highlights its appeal to industry partners aiming to accelerate decarbonisation in steelmaking.

WA Gains Green Iron Investment

Australia’s largest steelmaker, BlueScope, alongside Rio Tinto and BHP, settled on a site near BHP’s decommissioned Kwinana nickel refinery. The decision comes after discussions with multiple states, including NSW and South Australia, ultimately favouring WA due to its proximity to major iron ore operations and government incentives.

  • Woodside Energy joined the project to supply gas and potentially hydrogen for the pilot plant’s electric smelting furnace (ESF), crucial for low-carbon steel production.
  • The investment is expected to inject hundreds of millions of dollars into WA’s economy while creating jobs in the Kwinana region, which has faced over 1,500 recent redundancies.

Port Kembla Misses Out

Port Kembla was initially BlueScope’s preferred location for the pilot plant. However, challenges surrounding gas supply and pricing proved to be a significant barrier.

  • BlueScope’s Australian Steel Products Chief Executive, Tania Archibald, clarified that the decision does not jeopardise Port Kembla’s operations, which continue to produce three million tonnes of coal-fired steel annually.
  • Ms Archibald emphasised that the project aligns with BlueScope’s strategy to enable future direct reduction iron (DRI) production at Port Kembla.

Green Steel Innovation Timeline

The pilot plant aims to validate the use of WA’s iron ore, predominantly sourced from the Pilbara, for green iron and steel production.

  • Construction of the plant, with a capacity to produce 40,000 tonnes of molten iron annually, is planned for completion by 2028, pending a final investment decision by the four partner companies.
  • Optimisation of feed materials and operational processes could take an additional three to four years.

Rio Tinto’s iron ore head, Simon Trott, acknowledged that achieving large-scale green iron production will take time, citing the need for significant technological advancements.

  • “Transitioning Pilbara ores into low-emission steel production requires innovation and scalability, which will occur over many years,” Mr Trott explained.
  • A WA Chamber of Minerals and Energy report estimated that $37.5 billion in investment is required by 2030 to produce 4.5 million tonnes of hydrogen-based green iron.

Federal Support and Industry Impact

The Albanese government has hinted that the pilot plant could qualify for support through the $15 billion National Reconstruction Fund, reflecting its strategic importance in reducing carbon emissions.

Ms Archibald reiterated that the initiative directly addresses challenges posed by Pilbara iron ore’s low-to-medium grades, which require specialised processes to meet growing global demand for green steel.

Add Comment

Click here to post a comment