The Australian Renewable Energy Agency (ARENA) has committed $19.8 million to the NeoSmelt project, a collaborative initiative aiming to establish Australia’s largest electric smelting furnace (ESF) pilot plant in Kwinana, WA.
The joint venture brings together BlueScope, BHP, Rio Tinto, Woodside, and Mitsui Iron Ore Development to explore the direct reduced iron-electric smelting furnace (DRI-ESF) process for lower-emissions steelmaking.
The pilot aims to demonstrate that molten iron can be produced from Pilbara ore with lower carbon emissions, helping to decarbonise one of the world’s most emissions-intensive industries.
“Globally, the steelmaking industry makes up around eight per cent of greenhouse gas emissions,” said ARENA CEO Darren Miller. “The NeoSmelt project brings together some of the world’s largest players in a collaborative effort to reduce emissions in the sector. This represents what the energy transition is all about.”
BlueScope Chief Executive Australia, Tania Archibald, welcomed the support from ARENA.
“This is a significant step forward in developing technology for lower-carbon steelmaking using Pilbara ore,” she said. “With this backing, we now have the opportunity to develop world-leading technology that could transform Australia’s iron export industry.”
ARENA’s funding will support a front-end engineering design (FEED) study ahead of a final investment decision. The initiative falls under ARENA’s Industrial Transformation Stream, with Round 2 applications open until 15 July 2025.
For more information, visit arena.gov.au.