Tenova has been selected as preferred technology supplier and awarded a contract to carry out the Front-End Engineering Design (FEED) for a Direct Reduced Iron (DRI) pilot plant, a core component of the NeoSmelt project, advancing Australia’s push toward lower emissions steel.
The project is an initiative led by a consortium of BlueScope, BHP, Rio Tinto, Woodside Energy, and Mitsui Iron Ore Development, aimed at developing a groundbreaking lower-emissions ironmaking pilot facility. The plant will demonstrate that Pilbara iron ores can be used in a DRI-electric smelting furnace (DRI-ESF) ironmaking route with the main advantage of lower emissions in steelmaking, compared to the CO2 emissions of the conventional blast furnace–basic oxygen furnace (BF-BOF) process that is still used for the majority of iron and steel production globally.
The contract, signed at the beginning of June 2025, concerns the feasibility phase of the project, which is currently underway. The Kwinana Industrial Area, south of Perth, has been chosen by the consortium as the preferred location for the pilot facility, with a Final Investment Decision expected in 2026; if approved, the operations at the facility will start in 2028.
The DRI plant will adopt ENERGIRON DRI technology, jointly developed by Tenova and Danieli. Designed to produce up to 50,000 tons per year of DRI, the equipment will feature dual operational flexibility, capable of using either natural gas or hydrogen as a reducing agent. This versatility will enable the project to potentially test multiple decarbonization pathways and adapt to evolving loweremissions energy availability and infrastructure. In addition to its reductant flexibility, the DRI plant will also be capable of processing medium-grade iron ore, adding strategic value, and will be equipped with an integrated carbon capture system, in line with potential long-term decarbonization strategies.
Chris Page, NeoSmelt General Manager, said: “The innovative ENERGIRON technology aims to accelerate the transformation of steelmaking by enabling the use of new, lower emissions pathways for Australia’s abundant iron ore.”
“This project marks a major milestone in our decarbonization journey. We are proud to contribute with our technology and expertise to such a pioneering initiative for the future of iron and steelmaking,” commented Jorge Martinez, Tenova HYL Commercial Director.
