In a statement, Rio Tinto said it will invest more than AU$35 million in cash and in-kind contributions in Calix Ltd. to support its proposed plant. If built, the plant would annually produce up to 30,000 metric tons of hydrogen direct reduced iron (H2-DRI) or hot briquetted iron (HBI) from a range of iron ore sources.

The plant is to built on a site in Kwinana, south of Perth, that had been intended for Rio Tinto’s now-paused BioIron Research and Development Facility and associated pilot plant. Rio Tinto said it believes the current furnace design for BioIron requires additional development to minimize technical risks and to optimize its performance.

“We’re pleased to partner with Calix, an Australian technology company, to help progress the Zesty technology to be able to use Pilbara iron ores for lower-emissions steelmaking,” said Rio Tinto iron ore chief executive Matthew Holcz. 

“In parallel, we’ll keep progressing BioIron with our partners, the University of Nottingham and Metso, to further its potential. Both projects are part of our work to reduce emissions and support the future of iron ore in Australia and the communities that depend on it.”

Calix chief executive officer Phil Hodgson said the joint development agreement with Rio Tinto is a major milestone in the commercialization of its technology, which it calls Zesty. 

“This strong support from Rio Tinto provides further validation of the potential for deployment of the Zesty technology to the world’s largest minerals and metals market, its potential to help decarbonize a critical industry responsible for (approximately 8% of global CO2 emissions, and the opportunity to help future-proof Australia’s largest source of export income,” he said.