- A pre-feasibility study will be conducted for renewable hydrogen supply in the Pilbara
- Key focus on using renewable hydrogen at POSCO’s Hot Briquetted Iron plant
- The study will consider export of green fuel to South Korea
South Korean steel making company POSCO and French energy generator ENGIE will conduct a pre-feasibility study for a major renewable hydrogen project in the Pilbara.
The study will determine the feasibility of using renewable hydrogen to power POSCO’s proposed Hot Briquetted Iron (HBI) plant in Port Hedland.
Western Australia currently provides 38 per cent of the world’s supply of iron ore, which is processed overseas to make steel.
HBI is a premium form of direct reduced iron which will add downstream value to Pilbara iron before it is exported.
With a local HBI plant, the State will have the ability to undertake an intermediate and important processing step between iron ore and steel.
Being able to use renewable hydrogen in the proposed plant will significantly reduce the global emissions it creates and produce green iron.
The study will support development plans for inland renewable energy sites, including wind and solar generation, a hydrogen electrolyser, large-scale storage capability and a pipeline capable of transporting green hydrogen to South Korea to decarbonise POSCO’s assets. The study is expected to be completed in early 2024.
As stated by Hydrogen Minister Bill Johnston:
“Western Australia continues to explore the potential uses of renewables in the resources sector and this pre-feasibility study is a major step towards a clean energy future.
“This builds off our successful Green Streel Opportunity report completed earlier this year, which mapped how WA iron ore can reduce emissions in steelmaking.
“Producing green steel would make WA a world player in the green industry, with current steel manufacturing generating more than seven per cent of global carbon emissions.
“I look forward to the outcomes from this pre-feasibility study.
