BlueScope Steel (ASX:BSL), BHP Group (ASX:BHP), and Rio Tinto (ASX:RIO) will develop Australia's largest ironmaking electric smelting furnace pilot plant in Kwinana Industrial Area, located south of Perth in Western Australia, according to a Tuesday joint statement.
The project is part of the companies' decarbonization efforts in line with the formation of the NeoSmelt consortium in February. Woodside Energy (ASX:WDS) will join the consortium as an equal equity participant and energy supplier, subject to finalizing commercial arrangements.
The pilot plant is expected to produce 30,000 to 40,000 tonnes of molten iron a year and has the potential to open a pathway to near-zero emissions steelmaking using Pilbara iron ore, benefiting the rest of Australia's iron ore industry, the companies said.
BlueScope Steel's shares were up almost 1% in recent Tuesday trade, while Woodside Energy's shares fell 1%.
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