NeoSmelt, a low-emissions ironmaking initiative backed by BlueScope, BHP, Rio Tinto, Woodside Energy, and Mitsui Iron Ore Development, has taken a major step forward with the appointment of Tenova as the preferred technology supplier. Tenova will carry out Front-End Engineering Design (FEED) for a Direct Reduced Iron (DRI) pilot plant central to the project.
The pilot facility, planned for the Kwinana Industrial Area near Perth, aims to demonstrate the viability of using Pilbara iron ore in a DRI-electric smelting furnace (DRI-ESF) process. This route offers a lower-emissions alternative to the traditional blast furnace-basic oxygen furnace (BF-BOF) method still dominant in global steel production.
Designed to produce up to 50,000 tons of DRI annually, the plant will utilize ENERGIRON technology, developed by Tenova and Danieli, with the ability to operate on either natural gas or hydrogen. It will also process medium-grade iron ore and include an integrated carbon capture system, allowing the project to explore multiple decarbonization pathways.
The feasibility phase is currently underway, with a final investment decision expected in 2026. If approved, the facility is set to begin operations in 2028.