BHP and Hatch have signed a contract to design an electric smelting furnace pilot (ESF) plant to support a decision to build the facility in Australia.
The ESF facility aims to demonstrate a pathway to minimise CO2 intensity in steel production utilising iron ore from BHP’s Pilbara mines for BHP’s steelmaking customers.
According to BHP, the small-scale demonstration plant would engage with steel producers and technology providers to generate and share learnings to accelerate the scale-up of ESF plant designs.
The pilot facility would be used to test and optimise iron output from the ESF plant, a new type of furnace being developed by top steel producers and technology companies to produce low CO2 emission-intensity steel. When combined with a direct reduced iron (DRI) step, the ESF can produce steel from iron ore using renewable electricity and hydrogen instead of coking coal. Calculations show that processing Pilbara iron ores through a DRI-ESF pathway might reduce CO2 emissions by more than 80% compared to the present industry average for the conventional blast furnace steel route.
BHP said the ESF allows for greater input raw material flexibility, removing a significant obstacle to broader adoption of other reduced CO2 emissions production pathways, such as using electric arc furnaces solely built for scrap steel and high-quality DRI. The ESF can be integrated into an existing steel plant’s downstream production units.
The pilot facility will provide more detailed and accurate information about the performance of this technology for turning iron ores into molten iron and steel. Planned test programs will assist in de-risk further investment in commercial-size projects, complementing BHP’s steel clients’ development plans. Several industry demonstrations, such as Sweden’s HYBRIT project, have used this scale-up strategy.
BHP and Hatch will evaluate potential locations for the planned plant in Australia based on supporting infrastructure, technology skills, and the availability of local partnerships to develop and run the facility.
“We see the ESF process as a critical breakthrough in significantly reducing the carbon emissions intensity of steel production and one that provides an opportunity for iron ore from our Pilbara mines. The steel industry has identified the ESF as a viable option to use a wider range of raw materials and steel companies globally are looking to build commercial-scale ESF plants as part of their CO2 emission reduction roadmaps,” BHP Chief Commercial Officer Vandita Pant said.
BHP’s Group Sales and Marketing Officer Michiel Hovers stated: “Hatch is a key partner in carbon emissions reduction initiatives across the world. We are pleased that we can collaborate with Hatch, alongside BHP’s existing customer and research partnerships, to further progress the development of pathways towards a lower GHG emission footprint for the steelmaking industry. The ESF technology is very exciting and potentially very relevant for reducing the carbon emissions intensity of steel production and provides new and exciting opportunities for our Pilbara iron ore and our customers.”
According to Hovers, BHP and Hatch have been collaborating on steel technology and design for decreasing greenhouse gas emissions for several years, including the ESF and in collaboration with steel manufacturers, and this project is a natural progression in the alliance.
“Hatch is excited to collaborate with BHP on this forward-looking initiative and is honored to contribute to the efforts of an industry leader who is dedicated to driving tangible progress. This project marks a significant milestone in the pursuit of decarbonisation within a challenging sector that underpins global infrastructure and progress,” Hatch Managing Director for Bulk Metals Joe Petrolito added.
