Rio Tinto Changes Direction on Green Iron

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)

Summary

Rio Tinto (London, England) has stopped working on its own green iron product, BioIron, after more than a decade in the works. Instead, it is investing in Calix to use its Zesty technology to make green iron using electric heating and hydrogen reduction.  

Teaming up with Calix

Global mining and metals company Rio Tinto (London, England) has stopped working on its own branded low-carbon ironmaking product 'BioIron' and instead is teaming up with Australian environmental technology company Calix (Pymble) to make green iron using electric heating and hydrogen reduction. The company said it will invest more than A$35 million (US$$23 million) to support Calix's Zero Emissions Steel Technology (Zesty) demonstration plant in Western Australia, which will allow Rio Tinto's Pilbara iron ores to be used in lower-emissions steel making. If approved, the demonstration plant will be built at a site in Kwinana, south of Perth, that had been earmarked for Rio Tinto's previously announced BioIron research and development facility and associated pilot plant. The Calix demonstration project already has the backing of the Australian Renewable Energy Agency (ARENA), which means sufficient funds are now in place. It is in its detailed design engineering phase, and a final investment decision is expected next year. 

What happened to BioIron?

BioIron was invented by Rio Tinto's steel decarbonisation team after a decade of research. It was designed to use raw biomass such as agricultural by-products like wheat straw, barley straw, sugarcane bagasse, rice stalks and canola straw, instead of coal as the reducing agent. The company said that electricity consumption in the BioIron process was about "one-third of the electricity required by other steelmaking processes that rely on renewable hydrogen." The company has now pressed the pause button on BioIron stating: "Rio Tinto has determined that the current furnace design for BioIron requires additional development to minimise technical risks and optimise its performance. It remains committed to the long-term potential of BioIron technology, and research and development continues in partnership with the University of Nottingham and sustainable technology company, Metso."

The Zesty Approach

The Calix technology uses a combination of electric heating and hydrogen reduction, backed by renewable energy, to produce green iron, and ultimately green steel. Early testing with the Heavy-Industry Low-carbon Transitions Cooperative Research Centre (HILT CRC) and industry partners have shown that the technology can produce green iron from a range of iron ore types and grades. The Zesty Green Iron Demonstration Plant is designed to produce up to 30,000 tonnes per annum of hydrogen direct reduced iron (H2-DRI) or hot briquetted iron (HBI) from a range of iron ore sources. The Demonstration Plant intends to provide an industry-wide facility for the non-exclusive toll processing of iron ores into H2-DRI or HBI. It has received a grant of up to A$44.9 million (US$29.2 million) from ARENA, which combined with Rio Tinto's finding, is enough to get the plant constructed. 

Zesty Claims

• Enables flexible operations compatible with variable renewable energy sources
• Enables theoretical minimum hydrogen use of 54 kilograms per tonne of iron
• Remove the need for ore pelletisation
• Enables the use of fines and lower-grade ores.

Rio Tinto Iron Ore Chief Executive Matthew Holcz said: "The world needs low-emissions steel if it is going to decarbonise, and we continue to look at a range of ways Pilbara iron ores can help to do this as new technologies emerge. We're pleased to partner with Calix, an Australian technology company, to help progress the Zesty technology to be able to use Pilbara iron ores for lower-emissions steel making. In parallel, we'll keep progressing BioIron with our partners, the University of Nottingham and Metso, to further its potential. Both projects are part of our work to reduce emissions and support the future of iron ore in Australia and the communities that depend on it."

Reaction to the News

Western Australian Premier Roger Cook said: "Locally made green iron is a key part of my vision to become a renewable energy powerhouse and make more things here. Coupled with my government's recent announcement that the government will take an 'if not, why not' approach to green steel procurement on major government projects, the Zesty Green Iron Demonstration Plant will support our efforts to diversify WA's economy so that it can remain the strongest in the nation. I welcome this agreement between Calix and Rio Tinto, which will play an important role in growing this exciting new industry in WA."

Key Takeaways

• Global mining and metals company Rio Tinto has stopped working for now on its own branded low-carbon ironmaking product 'BioIron' after a decade's research
• Rio Tinto is investing in Calix and its Zero Emissions Steel Technology (Zesty) for a green iron alternative
• A new plant will produce up to 30,000 tonnes per annum of hydrogen direct reduced iron (H2-DRI) or hot briquetted iron (HBI) from a range of iron ore sources

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).