Rio Tinto has abandoned plans to build a $215 million green steel research and development facility in Rockingham, instead opting to bring on environmental technology company Calix to build a green steel demonstration plant at the same site.
The BioIron facility was announced with much fanfare in June last year and would have seen a pilot plant using greener alternatives to coal to turn Pilbara iron ore into metallic iron.
Loading
However, earlier today the company said the furnace design for BioIron required “additional development to minimise technical risks and optimise its performance”.
Instead, the company has signed an agreement with Calix and will front up $35 million to help it build a Zero Emissions Steel Technology plant (known as Zesty) on the same site.
Calix already has a $44.9 million federal government grant to build the plant.
The news adds to the green steel controversy sparked last week after Premier Roger Cook declared the state wanted to use green steel in its $1.5 billion hospital build program.
The opposition criticised Cook’s claims because there are currently no proven green steel plants operating in WA, and there would likely not be before the build program is completed within four years.
Cook welcomed the announcement.
“Coupled with my government’s recent announcement that 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,” he said.
Read the full article here
