BlueScope’s Port Kembla Steelworks will be in focus here, with the duo looking to research and design low-emissions processes for the steel value chain, such as the utilisation of hydrogen to power operations.

To do this, the first phase of the project will determine the scale of a hydrogen pilot plant that will be based at the site. This development will consist of a hydrogen electrolyser, direct reduction process and melter.

It is hoped hydrogen will be used to directly reduce iron ores into a product that could then be processed in an electric melter to produce metallic iron suitable to be finished into steel.

Simon Trott, Chief Executive of Rio Tinto, said, “We are excited to sign this MoU with leading steelmaker BlueScope, a key customer of ours in Australia, and extend our partnership to low carbon iron and steelmaking.

“This partnership will benefit from BlueScope’s experience and know-how in using electric melters at its New Zealand steelworks, Rio Tinto’s experience in the Atlantic direct reduction market and the R&D capability and the experience of both Rio Tinto and BlueScope in iron ore processing.

“It is early days, but given both BlueScope and Rio Tinto are committed to net zero carbon emissions by 2050, we realise we need to investigate multiple pathways and strike partnerships across the steel value chain.”

Mark Vassella, Chief Executive of BlueScope, added, “We are pleased to be working with Rio Tinto, who supply the majority of iron ore to our Port Kembla plant. It’s a natural fit for us both and a meaningful opportunity for Australian steelmaking and mining to explore ways of contributing to emissions reduction targets.

“The new collaboration will focus on utilising green hydrogen for direct reduction of Rio Tinto’s Pilbara iron ores, which will then be fed into a melter.”