PERTH (miningweekly.com) – The Australian Renewable Energy Agency (Arena) has announced A$947 035 in funding to ASX-listed Calix to evaluate the feasibility of a low emissions method for reducing iron.

A A$1.96-million pre-front end engineering and design (pre-FEED) and FEED study will scope the design for a proposed demonstration scale hydrogen direct reduced iron (HDRI) production plant utilising Calix’s proprietary Zero Emissions Steel Technology (ZESTY).

ZESTY reduces iron-ore at significantly lower temperatures than conventional blast furnaces (BF) and can enable minimal consumption of hydrogen in the production of green steel.

Calix’s proposed demonstration plant will be capable of producing 30 000 t/y of HDRI as a feedstock for steel production.

Calix noted that the proposed renewably powered ZESTY iron plant will produce green hydrogen for the direct reduction of iron-ore to sponge iron. With no carbon involved throughout the process, the proposed ZESTY reactor will demonstrate a new approach to zero emissions iron and steel.

The ZESTY demonstration plant will also be compatible with intermittent operation, enabling economical use of low cost renewable power and will be compatible with load balancing applications for the energy grid.

The process builds on Calix’s existing Calix Flash Calciner technology that is used for a variety of industrial processes.

Arena said on Tuesday that as the world’s largest producer of iron-ore, Australia is uniquely positioned to reduce emissions from the steel value chain.

Reducing emissions from metals production is a strategic priority for Arena, with a focus on decarbonising the steel and aluminium value chains. Arena has previously supported Australian steel manufacturer BlueScope to investigate reducing emissions from the Port Kembla Steelworks using biochar or renewable hydrogen.

Arena CEO Darren Miller said that ZESTY is a prime example of Australian innovation helping tackle global challenges.

“Decarbonising heavy industries like steel is a big challenge, and a big opportunity, and Arena is looking to support companies like Calix that are developing potential solutions,” Miller said.

“For Australia and the world to meet our net zero targets, we’ll need to develop new ways of making materials the world relies on.

"Steel is among the most carbon-intensive industries, accounting for more than 7% of global carbon dioxide emissions, and Australia is well positioned to be a leader in this space.

"With abundant renewable energy resources and the world’s largest iron-ore deposits, we have a unique opportunity to decarbonise an industry that is critical to the global economy.

"We’re looking forward to the outcomes of this study and hope to see ZESTY play an important role in the future of Australian iron and steel,” he said.

Calix MD and CEO Phil Hodgson said that the decarbonisation of iron and steel represented a unique opportunity for Australia, and that this project aimed to further develop a homegrown Australian technology that, together with Australia’s leading iron-ore and renewable energy resources, could help make Australia a leading exporter of not just iron-ore, but green iron and green steel.

“We are grateful to Arena for their support of our shared vision for decarbonised iron and steel in Australia. We look forward to continuing to work closely with Arena and our partners in industry and academia towards achieving these environmentally and economically important goals,” Hodgson said.