Sydney-headquartered environmental technology company Calix Limited has secured a $44.9 million (USD 29.5 million) grant to build a zero emissions steel technology (ZESTY) green iron demonstration plant in Australia.
The significant Australian Renewable Energy Agency (ARENA) fund covers 50% of the project’s budget and subject to securing matching funding, construction is expected to begin in 2026, with commissioning and operations starting in 2028.
The demonstration plant project follows ARENA-funded pilot-scale trials that proved ZESTY’s potential to produce economic green iron from a range of iron ores, including lower grade ores from the Australian Pilbara region.
Though the demonstration’s plant location has not been disclosed the aim will be to produce 30,000 tonnes per annum of hydrogen direct reduced iron (H2-DRI) or hot briquetted iron (HBI) using electric heating and hydrogen reduction, rather than traditional fossil fuels.
Image: Calix
ZESTY is compatible with intermittent and renewable sources of electricity, while ZESTY’s electric heating provides a high degree of temperature control with fast start-up and shut down, and highly flexible production rates.
“As such, it may match production with the availability of low-cost electricity and hydrogen and may also provide a versatile load balancing service to the energy grid,” a Calix statement said.
Calix Chief Executive Officer and Managing Director Phil Hodgson said Calix shares ARENA’s and the Australian government’s vision of a green iron industry that can future proof the iron ore industry.
“Iron ore is Australia’s largest source of export income, and it is under existential threat in a decarbonising global economy,” Hodgson said.
“With the iron and steel industry responsible for approximately 7% to 8% of global carbon dioxide (CO2) emissions, we look forward to working with ARENA to advance the project and help address this significant global challenge and opportunity.”
The project is designed to deliver toll processing of iron ores from a range of producers to support the ongoing viability of Australian iron ore in a low emissions steel value chain and support the development of a green iron industry in Australia.
Calix Sustainable Processing General Manager Chris Ormston said the ZESTY demonstration plant, if successful, would be a landmark facility to help accelerate the development of a green iron industry in Australia.
“ZESTY’s compatibility with multiple ore types and grades will make it an ideal, multi-user platform facility to test and develop green iron and steel pathways,” Ormston said.
“Its potential to minimise hydrogen consumption, avoid pelletisation, and operate flexibly on low-cost electricity can enable it to do so in the most cost-effective way possible. We look forward to continuing to work with our partners across the iron and steel value chain in this exciting next phase.”
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