Rio Tinto has signed a Joint Development Agreement (JDA) with Australian environmental technology company Calix to support construction of the Zesty (Zero Emissions Steel Technology) demonstration plant in Kwinana, Western Australia. The project aims to enable Pilbara iron ores to be used in lower-emissions steel production.
The Kwinana site was originally earmarked for Rio Tinto’s BioIron research facility, but the company said the BioIron furnace design requires further development to reduce technical risks. Research will continue with the University of Nottingham and Metso.
Rio Tinto will contribute more than AUD 35 mln (USD 23 mln) toward Calix’s Zesty demonstration plant, which is also backed by ARENA (Australian Renewable Energy Agency) funding. The Zesty process uses electric heating and hydrogen to produce reduced-emissions iron and is compatible with lower-grade iron ore.
Under the JDA, Rio Tinto will provide technical and engineering support to help the project reach Final Investment Decision (FID). If FID is achieved, Rio Tinto will supply up to 10,000 tons of Pilbara iron ore for commissioning and early testing, while also connecting Calix with potential downstream users.
Calix has also secured a conditional AUD 44.9 mln (USD 29.2 mln) ARENA grant for the project.
The Kwinana location offers access to port infrastructure and is near the NeoSmelt facility, where Direct Reduced Iron from the Zesty plant could undergo downstream processing. Rio Tinto is one of five companies developing the NeoSmelt project.
The agreement grants Rio Tinto a non-exclusive, global licence for potential commercial use of the Zesty technology, including sub-licensing to affiliates and customers, and the option to act as a non-exclusive global marketing agent.
1 USD / 1.53 AUD
