Project in Australia boosts electrolyzer production for green iron manufacturing

The Australian continent is set to become a global hub for green iron production, with the ambitious Mid-West Green Iron project aiming to lead the charge. This technological endeavour, already widely deployed in regions such as the US, India, and the Middle East & North Africa, is poised to transform Western Australia into a significant player in the global green steel market.

The project, spearheaded by Australia's Progressive Green Solutions (PGS), aims to produce and export up to 30 million tonnes of green pellets annually, alongside 10 million tonnes of green Hot Briquetted Iron (HBI) per year as it scales up. The HBI, a compressed form of direct reduced iron, will be exported as a value-added product from Western Australia.

The most promising pathway for decarbonizing primary steel production involves the production of DR iron using electric arc furnaces. Recognizing this, PGS has chosen Thyssenkrupp Nucera as the preferred supplier of electrolysers for the production of green hydrogen at the Mid-West Green Iron project.

However, the mining and processing setup for DRI feedstock is more complex than for conventional blast furnaces, which can use a wider range of iron ores. To remain competitive, Australia has two options: develop new magnetite mines capable of producing higher-grade ore, or deploy emerging technologies that enable the use of its abundant low- to mid-grade ores.

The development of magnetite mines in Australia is a multi-faceted endeavour. It involves technical innovation in mineral processing and mining investment, with companies adapting crushing and processing technologies to optimize the production of high-quality iron ore for green steel production. Strategic funding and compliance efforts also support maintaining competitive production against intensifying global competition.

The Mid-West Green Iron project, subject to final investment decision, aims to produce 7 million tonnes of green iron pellets annually and convert half to make 2.5 million tonnes of green HBI in Western Australia's Mid-West region. The plant will be powered by renewable energy and consume green hydrogen while using local magnetite iron ore, helping to reduce CO2 emissions by up to 90% compared to traditional steel production methods.

Despite these promising developments, the Institute for Energy Economics and Financial Analysis (IEEFA) has expressed concerns about Australia's suitability for a green steel transition based on its current resources and mining and steel sector setup. The critical factor, they suggest, is time in Australia's green steel transition pathways.

The project boasts an integrated supply chain from mine to port, utilizing already established key infrastructure. With the first export anticipated in 2029, the Mid-West Green Iron project is a significant step towards Australia's transition to a greener, more sustainable future in the steel industry.

Project in Australia boosts electrolyzer production for green iron manufacturing