ARENA backs Calix green steel demonstration plant

The Australian Renewable Energy Agency (ARENA) has announced it has committed $44.9 million to Calix to build a novel demonstration plant using its Zero Emissions Steel Technology (ZESTY).

Founded in 2005, Calix is an Australian developer of sustainable high-temperature mineral processing, with applications across steel, cement, alumina, lithium and critical minerals.

Powered by renewable electricity and hydrogen, the funded plant will aim to produce up to 30,000 tonnes of low-carbon hydrogen direct reduced iron (HDRI) and hot briquetted iron (HBI) each year.

ZESTY leverages Calix’s proprietary Flash Calciner technology, which aims to reduce the cost of green iron production. The new funding builds on the successful outcomes of ARENA-funded engineering studies for the demonstration plant. The funding also supports early-stage engineering studies for a much larger commercial-scale ZESTY plant, helping build local capability in low-emissions metals — a strategic priority for ARENA and a critical future industry for Australia.

The project will also showcase a flexible green iron process that can ramp production up or down to match renewable energy supply.

ARENA CEO Darren Miller stressed that finding a low- or zero-emissions pathway for steelmaking is crucial, given its significant contribution to global emissions.

“As the world’s largest producer and exporter of iron ore, Australia has a critical role in reducing emissions across the steel value chain,” he said. “ZESTY is a strong step toward building a low-emissions steel industry at home.

“What makes ZESTY so compelling is its potential to dramatically lower the amount of hydrogen required to convert iron ore into pure iron. ZESTY, in combination with use of renewable electricity from Australia’s world-class solar and wind resources, has the potential to create a new green iron industry targeting both domestic and export markets as the world transitions away from fossil fuels.”

Calix CEO Phil Hodgson welcomed the funding, saying: “Green iron can tackle one of the world’s hardest-to-abate emissions sources while adding value to Australia’s biggest export.”

Image credit: iStock.com/Lyubov Furs