Australia takes a significant step in revolutionizing the steel industry with its largest pilot project for low-carbon pig iron production, aligning with global efforts to decarbonize.

Australian mining giants BHP, Rio Tinto, and BlueScope Steel are collaborating to develop the project, called NeoSmelt, a pilot green pig iron plant located in the Kwinana Industrial Zone, south of Perth.

Scheduled to begin commercial operations in 2028, the facility will produce 30,000-40,000 tons of liquid iron annually using electric smelting and direct reduced iron (DRI) technologies. Initially powered by natural gas, the plant will eventually transition to low-carbon hydrogen, aiming to reduce greenhouse gas emissions in the steel sector, which contributes 8% of global CO2 output.

The Western Australian government has pledged approximately A$75 million, emphasizing its commitment to sustainable steelmaking.

Woodside Energy will provide energy solutions, leveraging expertise in natural gas and hydrogen.

NeoSmelt signifies a transformative opportunity for Australia to process Pilbara iron ore locally while leading in sustainable steel innovation, fostering global decarbonization and industry growth.