BlueScope, BHP, and Rio Tinto have selected the Kwinana Industrial Area, south of Perth, to host Australia’s largest electric smelting furnace (ESF) pilot plant. This groundbreaking project aims to test technology that enables Pilbara iron ore to be used for ironmaking without traditional blast furnaces, advancing the decarbonization of steelmaking.
The NeoSmelt collaboration, formed in February, combines BHP and Rio Tinto’s expertise in Pilbara iron ore with BlueScope’s experience in ESF technology. Woodside Energy is set to join the consortium as an equal equity participant and energy supplier, pending final commercial agreements.
The pilot plant will produce 30,000-40,000 tons of molten iron annually using direct reduced iron (DRI)-ESF technology. Initially powered by natural gas, it aims to transition to hydrogen for lower-carbon ironmaking. If successful, NeoSmelt could pave the way for near-zero-emissions steelmaking, ensuring the long-term viability of Australia’s iron ore industry.
Kwinana was chosen for its logistics and infrastructure advantages. Feasibility studies are expected to commence in Q2 2025, with a final investment decision (FID) targeted for 2026 and operations beginning in 2028. NeoSmelt remains open to collaborations that align with its objectives.
