Under the agreement, the construction of Calix’s Zero Emissions Steel Technology (Zesty™) demonstration plant will be supported. The project could enable the use of Pilbara iron ore in lower emission steel production.
If approved, the demonstration plant will be built in the Kwinana region, south of Perth, on land previously allocated by Rio Tinto for its BioIron™ research and pilot facilities. Rio Tinto stated that the current furnace design of BioIron requires further development to minimise technical risks and optimise performance, while reaffirming its commitment to the long term potential of BioIron. Research and development work will continue to be carried out jointly with the University of Nottingham and sustainable technology company Metso.
Under the project, Rio Tinto will invest more than AUD 35 million in Calix through both cash and in kind contributions, depending on project stages. The Zesty Green Iron Demonstration Plant is also supported by the Australian Renewable Energy Agency (ARENA). The Zesty process is compatible with lower-grade iron ore and enables low emission iron production through electric heating and hydrogen reduction.
Matthew Holcz, Chief Executive of Rio Tinto Iron Ore, said: ‘The world needs low-emission steel to achieve decarbonisation. We are continuing to explore how Pilbara iron ores can play a role in this process with Zesty technology. We will also keep developing the potential of BioIron together with our partners.’
Western Australia Premier Roger Cook stated that the Zesty Green Iron Demonstration Plant would contribute to diversifying the regional economy and maintaining the country’s strong economic position. The Kwinana location offers strategic advantages in terms of downstream processing and access to ports.
Calix CEO Phil Hodgson emphasized that the agreement with Rio Tinto represents an important step in commercialising the Zesty technology, adding that they are providing financial, technical, and market support to advance the project.
Under the terms of the JDA, Rio Tinto will support the Zesty project’s pathway to a Final Investment Decision (FID) with technical support and engineering services. If the FID is reached and project construction is successfully completed, Rio Tinto will supply up to 10,000 tonnes of Pilbara iron ore for commissioning and testing of the facility. The Zesty product will also be introduced to potential customers in subsequent phases.
The partnership also grants Rio Tinto a non-exclusive licence and sublicensing rights for the global use of Zesty technology.
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