Calix (ASX:CXL) will construct a green iron demonstration plant after securing a $44.9 million grant from the Australian Renewable Energy Agency (ARENA).
The Demonstration Plant Project intends to produce either hydrogen direct reduced iron or hot briquetted iron at a rate of 30,000 tonnes per annum to support the growing demand for Australian produced iron under a low emissions chain.
Calix has streamlined pilot-scale trials to validate the potential of green iron production from different iron ores at the project, funded by ARENA.
Funding sees ARENA providing up to half of the plant’s budget, while Calix will progress development with its current resources and financial position until the end of next year.
ARENA CEO Darren Miller says Australia needs to play a critical role in reducing emissions, specifically in the steel value chain.
“ZESTY is a strong step toward building a low-emissions steel industry at home,” Miller says.
“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 intends to conduct a techno-economic assessment of ZESTY to facilitate the commercial deployment of its technologies into the global supply chain following results from the plant.
Calix CEO Phil Hodgson says the company is grateful for ARENA and the Australian Government’s support, as this grant is an important milestone in the commercialisation of ZESTY.
“Our shared vision is that a green iron industry here in Australia can add value to, and help futureproof, Australia’s iron ore industry,” Hodgson says.
“Iron ore is Australia’s largest source of export income, and it is under existential threat in a decarbonising global economy.”
The Australian Government has increased its focus on the production of green iron, deploying $1 billion towards the Green Iron Investment Fund earlier this year.
As reported by Mining.com.au, the government is pushing producers to meet 852 million tonnes of green iron by 2050, in aid of the country’s greater net zero goals.
Minister for Climate Change and Energy Chris Bowen says green metals play a crucial role in the Future Made in Australia agenda.
“We’re backing technologies like ZESTY because cutting emissions from heavy industry is not only essential to reaching net zero — it’s also good for Australian workers and good for our economy,” Bowen says.
The demand for iron ore is expected to surge by a yearly increase of 0.9% until 2027.
Write to Maddison Elliott at Mining.com.au
Images: Calix
