Under a Joint Development Agreement (JDA), Calix has secured AUD $8m ($5.2m) across two tranches before a final investment decision (FID) on the green iron plant, although it’s dependent on due diligence and milestones.

More than AUD $27m ($17.6m) of additional in-kind support, including technical expertise, land, customer access, and, following FID, up to 10,000 tonnes of Pilbara iron ore, will also be provided.

Zesty pilot plant © Calix Limited

The Pilbara iron ore will be used for commissioning and early operations of Calix’s Zesty demonstration plant in Kwinana, which uses electric heating and hydrogen to produce up to 30,000 tonnes per year of low-emissions direct reduced iron (DRI).

Ro Tinto’s financial contribution will also unlock the matched funding required for Calix’s $44.9m ($29m) grant from the Australian Renewable Energy Agency (ARENA).

The JDA also gives the company the option to take equity in Calix’s Zesty subsidiary and potentially market and license the technology to its global steelmaking customers.

“The world needs low-emissions steel if it’s going to decarbonise, and we continue to look at a range of ways Pilbara iron ores can help to do this as new technologies emerge,” explained Rio Tinto’s Iron Ore CEO Matthew Holcz.

The project is now in its detailed engineering (FEED) phase, with FID scheduled for 2026.

WA Premier, Roger Cook, claimed locally made green iron is a “key part” of his vision to become a “renewable energy powerhouse.”

Cook added, “Coupled with my government’s recent announcement that the government will take an ‘if not, why not’ approach to green steel procurement on major government projects, the Zesty plant will support our efforts to diversify WA’s economy so that it can remain the strongest in the nation.”

GWGI data shows that at least 18 green hydrogen projects are planned in WA, underscoring the region’s commitment to building capacity.

And despite experiencing numerous large-scale project cancellations in the country over the past year, industry analysts have suggested that green hydrogen demand from target export nations such as Japan, South Korea and Europe, will “continue to drive projects forward.”