Australia's iron ore supplier Fortescue has signed an agreement with China's Taiyuan Iron and Steel Group (TISCO), a subsidiary of China's Baowu Steel Group, to jointly explore hydrogen-based plasma-enhanced iron and steel metallurgical technology. The collaboration aims to drive decarbonization in the steel industry.

The two parties will design and build an industrial trial line with the goal of producing 5,000 metric tons of hot metal using this technology. The trial will test hydrogen-based plasma-enhanced iron and steel metallurgical technology, aiming to eliminate high-emission preprocessing of iron ore.

Fortescue will provide funding for the project and hopes this collaboration will enhance the application of its Pilbara iron ore in green steel production through this collaboration. The partnership also highlights how the steel industry's low-carbon transition could increase demand for high-grade iron ore