ENERGIRON technology will help design a flexible, hydrogen-ready DRI plant within the NeoSmelt initiative
Tenova has been selected as the preferred technology supplier for NeoSmelt, a major project aimed at developing low-emissions steelmaking in Australia. The company will lead the Front-End Engineering Design (FEED) of a Direct Reduced Iron (DRI) pilot plant - one of the key components of the NeoSmelt initiative.
The NeoSmelt project is part of a broader effort to explore cleaner, more flexible ways of producing steel. It is backed by a consortium of major industry players, including BlueScope, BHP, Rio Tinto, Woodside Energy, and Mitsui Iron Ore Development, and involves a feasibility study for a pilot facility that integrates DRI and electric smelting furnace (ESF) technology.
The pilot plant will be located in the Kwinana Industrial Area, south of Perth. The Final Investment Decision is expected in 2026. If approved, construction would begin shortly thereafter, with operations planned to start in 2028.
The DRI plant will be based on the innovative ENERGIRON technology, jointly developed by Tenova and Danieli. It will be designed to produce up to 50,000 tons of DRI per year and will feature a dual-fuel system that allows it to operate using either natural gas or hydrogen as a reducing agent. This flexibility will allow the consortium to test multiple decarbonization scenarios and adapt to evolving energy infrastructure.
In addition to fuel flexibility, the plant will be capable of producing highly metallized and high-carbon DRI, a preferred material for further processing in pig iron production. It will also be designed to process low-grade iron ore, which is strategically important for Australia’s mining sector. Furthermore, the plant will be carbon capture–ready, supporting long-term climate goals.
The NeoSmelt initiative is a critical step in addressing the steel industry’s decarbonization challenge. By integrating DRI and electric smelting technologies, the project aims to validate a new, lower-emissions route to produce molten iron using Pilbara iron ore.
This contract reinforces Tenova’s position as a key enabler of sustainable innovation in the global metals industry.
General Manager, NeoSmelt
“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.”
Tenova HYL Commercial Director
“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.”
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