Rio Tinto and BlueScope to explore low carbon-steelmaking pathways
29 October 2021 - 09:01AM
Business Wire
Rio Tinto and BlueScope will work together to explore low-carbon
steelmaking pathways using Pilbara iron ores, including the use of
clean hydrogen to replace coking coal at BlueScope’s Port Kembla
Steelworks.
The two companies have signed a Memorandum of Understanding
(MOU) to research and design low-emissions processes for the steel
value chain, including iron ore processing, iron and steelmaking
and related technologies.
Rio Tinto and BlueScope will prioritise studying the use of
green hydrogen at the Port Kembla Steelworks in Australia to
directly reduce Pilbara iron ores into a product that could then be
processed in an electric melter to produce metallic iron suitable
to be finished into steel.
The MOU expands the partnership between the two companies, who
were already jointly studying technology to reduce carbon emissions
from existing iron and steelmaking processes. It will also allow
more projects to be added as technologies mature.
Rio Tinto Iron Ore Chief Executive Simon Trott said “‘We are
excited to sign this MOU with leading steelmaker BlueScope, a key
customer of ours in Australia, and extend our partnership to low
carbon iron and steelmaking.
“This partnership will benefit from BlueScope’s experience and
know-how in using electric melters at its New Zealand steelworks,
Rio Tinto’s experience in the Atlantic direct reduction market and
the R&D capability and the experience of both Rio Tinto and
BlueScope in iron ore processing.
“It is early days, but given both BlueScope and Rio Tinto are
committed to net zero carbon emissions by 2050, we realise we need
to investigate multiple pathways and strike partnerships across the
steel value chain.”
BlueScope Chief Executive Mark Vassella said “We are pleased to
be working with Rio Tinto, who supply the majority of iron ore to
our Port Kembla plant. It’s a natural fit for us both and a
meaningful opportunity for Australian steelmaking and mining to
explore ways of contributing to emissions reduction targets.
“The new collaboration will focus on utilising green hydrogen
for direct reduction of Rio Tinto’s Pilbara iron ores, which will
then be fed into a melter.”
“This is an important program – one which will need broad
support from governments, regulators, customers and suppliers. At a
time when there is much talk and expectation about climate, this is
an example of two significant Australian businesses getting on with
real action. We are putting our dollars and our people right on the
front line of addressing climate change.”
The first phase of the collaboration will be to determine the
scale of a pilot plant to be based at the Port Kembla steelworks,
consisting of a hydrogen electrolyser, direct reduction process and
melter.
At an investor seminar last week, Rio Tinto said it was focused
on studying three potential pathways towards net neutral
steelmaking; using sustainable biomass with Pilbara iron ore to
replace coking coal in the iron and steelmaking process; using
hydrogen-based hot-briquetted iron (HBI) with high-grade ores in
Canada; and using hydrogen direct reduced iron (DRI) with a melter
for Pilbara ores.
This MOU aligns with the last potential pathway and shows Rio
Tinto’s commitment to each of them.
At the investor seminar, Rio Tinto announced new targets of
reducing its Scope 1 & 2 carbon emissions by 50 per cent by
2030, more than tripling its previous target, and a 15 per cent
reduction in emissions by 2025, five years earlier than previously.
These targets are supported by around $7.5 billion of direct
investments to lower emissions between 2022 and 2030.
riotinto.com
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