Rio Tinto Secures ARENA Support to Advance Decarbonisation Project

Core Insights - Rio Tinto Group's joint venture NeoSmelt has received support from the Australian Renewable Energy Agency (ARENA) for its planned pilot plant in Western Australia [1][8]. Group 1: Joint Venture Details - NeoSmelt was established in February 2024 by Rio Tinto, BHP Group, and BlueScope to develop Australia's largest ironmaking electric smelting furnace (ESF) pilot plant [2][3]. - The collaboration aims to decarbonize the steelmaking process, which contributes approximately 8% of global carbon emissions [2]. Group 2: Financial Support and Investment - NeoSmelt has secured A$19.8 million (approximately $12.9 million) for a Front-End Engineering Design (FEED) study focused on lower-carbon production using Pilbara iron ore [4][8]. - The Western Australian Government has committed A$75 million (around $48.9 million) to support the project [4]. Group 3: Pilot Plant Operations - The NeoSmelt pilot plant is designed to produce 30,000-40,000 tons of molten iron annually, initially using natural gas to reduce iron ore to direct reduced iron (DRI) [6]. - The project aims to transition to lower-carbon hydrogen for the reduction process once operational, with a target to reduce CO2 emissions by up to 80% compared to traditional blast furnaces [5][6]. Group 4: Timeline and Future Plans - The project is currently in the feasibility phase, with a final investment decision expected in 2026 and operations anticipated to commence in 2028 [6].