Government invests $26m on low-emissions iron production

The government is funding up to $26 million on technology that could turn Australian iron ore into lower-emissions iron using renewable energy.

Through the Future Made in Australia Innovation Fund, administered by the Australian Renewable Energy Agency (ARENA), the government is supporting Perth-based Element Zero to test whether Australian iron ore can be converted into high purity iron at pilot scale, using an electricity-based process powered by renewables.

Iron and steel production is one of the world's largest industrial sources of emissions, with conventional ironmaking typically using coal and other carbon-based materials to convert iron ore into iron.

Assistant minister for climate change and energy Josh Wilson said: "Ironmaking is one of the most emissions-intensive parts of steel production, which is why investing in cleaner ways to make iron is such an important opportunity for Australian industry, particularly here in Western Australia."

Element Zero's $53.6 million project will test whether an alternative process - electrochemical ironmaking, which is powered by electricity and uses molten salts - could produce lower-emissions iron efficiently without relying on coal.

"Australia has the iron ore the world needs and some of the best renewable energy resources in the world - the opportunity is to bring those advantages together and make more things here," minister for climate change and energy Chris Bowen said.

"This investment backs Australian technology that could add more value to Australian iron ore, support Australian manufacturing and help cut emissions from one of the hardest parts of the global economy to decarbonise."

The pilot will test a process designed to operate at temperatures of around 400 to 450°C, which are lower than the temperatures typically used in traditional ironmaking processes.

The project will be delivered in two stages. The first stage will involve a pilot plant capable of producing around one tonne of iron per day. Subject to a formal review, the second stage will scale production up to 10 tonnes per day.

The pilot will test different types of Australian iron ore, including hematite and magnetite, and help demonstrate the technology to Australian and international steelmakers.