South Korean steelmaking company POSCO and French energy company ENGIE are set to conduct a pre-feasibility study for a significant renewable hydrogen project in Western Australia.
The study assesses the feasibility of utilising renewable hydrogen to power POSCO’s proposed Hot Briquetted Iron (HBI) plant in Port Hedland.
Western Australia presently supplies 38% of the world’s iron ore supply, which is processed in other countries to manufacture steel.
HBI is a high-quality kind of direct reduced iron that will add value to Pilbara iron before it is exported.
According to the Western Australian Government, the State will have the capability to perform an essential intermediate processing step between iron ore and steel through a local HBI plant.
“Western Australia continues to explore the potential uses of renewables in the resources sector and this pre-feasibility study is a major step towards a clean energy future,” Hydrogen Minister Bill Johnston said.
Minister Johnston stated that this builds on the success of our Green Steel Opportunity report, which was released earlier this year and highlighted how WA iron ore may reduce emissions in the steelmaking process.
“Producing green steel would make WA a world player in the green industry, with current steel manufacturing generating more than seven per cent of global carbon emissions,” the Minister added.
The ability to use renewable hydrogen in the proposed facility will significantly cut global emissions while producing green iron.
To decarbonise POSCO’s assets, the study will support development plans for inland renewable energy sites, including wind and solar power, a hydrogen electrolyser, large-scale storage capability, and a pipeline capable of transporting green hydrogen to South Korea. The research will be concluded in early 2024.
