Rio Tinto said it will invest $215 million (US$143 million) to develop a research and development facility in Western Australia to assess the low-carbon-making process in support of the decarbonisation of the steel industry.
The new Biolman R&D facility is expected to rise in the Rockingham Strategic Area, south of Perth.
The said facility is expected to use raw biomass and microwave energy to convert iron ore to metallic iron in the steelmaking process.
It will also include a pilot plant that will be 10 times bigger than its prototype in Germany, and it will be the first time for the process to be tested on a semi-industrial scale.
“The world needs low-carbon steel to reach net zero, and we are working to make this a reality by finding better ways to turn our Pilbara ores into steel,” said Rio Tinto Iron Ore Chief Executive Simon Trott.
“This research and development facility will further test the BioIron process, showcase Western Australian innovation capability, and further demonstrates Rio Tinto’s commitment to supporting and enabling the decarbonisation of the steel industry.”
Mr. Trott also said that the fabrication of the equipment will begin this year, with commissioning expected in 2026.
Rio Tinto claimed that BioIron R&D facility has the potential to reduce carbon emissions by up to 95 percent compared with the current blast furnace method.
Rio Tinto also said that the proposed plant is a joint project with University of Nottingham, Metso Corporation, and Western Australian (WA) engineering company Sedgman.
Once completed, the facility is expected to create 60 construction jobs for Western Australians.
“As one of the world’s largest iron ore producers, it just makes sense for WA to lead the world when it comes to low-emission steelmaking,” said WA Premier Roger Cook.
Becoming More Sustainable
Global Efficiency Intelligence previously reported that global steel production contributes to about 11 percent of all carbon dioxide emissions. The said report also disclosed that China has the highest number of steel-induced CO2 emissions, attributed to its large-scale steel production.The World Steel Organization reported that Australia is ranked 29 in crude steel production.
Despite this ranking, the CSIRO reported that Australia produces half of the world’s iron ore, representing the country’s largest export.
A report from the Global Energy Monitor stated that 43 percent of the world’s planned steelmaking capacity is now using electric arc furnace (EAF) technology, whereas 57 percent would still use the coal-based blast furnace-basic oxygen furnaces (BF-BOF). This report reflects that the global steel industry is now pivoting towards a more sustainable model.
Last April, the University of Wollongong said that a team of its researchers received $4.2 million funding from the Australian Renewable Energy Agency (ARENA) and industry partner BlueScope Steel to examine ways to use low and medium grade iron ore in low emission steelmaking and further decarbonise domestic steel production.
“Over the next five years, our team will collaborate with our industry partner to thoroughly investigate the long-term viability of utilising Australia’s Pilbara ores in the emerging ESF (electric smelting furnace) process, including identifying and addressing some future challenges and process constraints for low emission steel production,” said project co-leader Xue Feng Dong.
