{"id":2699693,"version":5,"headline":"Australia backs expanded NeoSmelt green iron group","dateModified":"2025-06-17T15:51:36Z","datePublished":"2025-06-17T05:49:36Z","articleBody":"<article><p class=\"lead\">The Australian government has awarded domestic green iron consortium NeoSmelt — comprising five major metals and energy producers — a A$19.8mn ($13mn) grant to support its development of an electric smelter in Western Australia.</p><p>The grant will support the project's A$48.8mn engineering study, Australian climate change and energy minister Chris Bowen said today. </p><p>NeoSmelt will make a <a href=\"https://direct.argusmedia.com/newsandanalysis/article/2639608\">final investment decision</a> on the project next year. It expects to produce 30,000-40,000 t/yr of low-carbon direct reduction iron at the plant from 2028. The consortium will initially power the site using natural gas, but may later transition to renewable hydrogen. </p><p>NeoSmelt includes many of Australia's largest resource producers. Its founding members are Australian metals producers BlueScope Steel and BHP, and UK-Australian metals producer Rio Tinto. </p><p>Japanese producer Mitsui and Australian energy producer Woodside Energy joined the consortium today, BlueScope chief executive for Australian steel products Tania Archibald said in a statement announcing the grant. </p><p>The Australian government will also support the project through its <a href=\"https://direct.argusmedia.com/newsandanalysis/article/2684927\">A$14bn green hydrogen subsidy scheme</a>, which will enable producers to claim tax credits worth A$2/t of low-carbon hydrogen produced from 2027. </p><p>It is also supporting other low-carbon iron producers through its A$1bn <a href=\"https://direct.argusmedia.com/newsandanalysis/article/2659774\">green iron investment fund</a>, which is designed to support early-stage projects and attract private-sector investment. </p><p class=\"bylines\">By Avinash Govind </p></article>","dateline":"Sydney, 17 June (Argus)","license":"<footer><p><br> Send comments and request more information at <a href=\"mailto:feedback@argusmedia.com?subject=Argus Direct article feedback&body=I am contacting you regarding Australia backs expanded NeoSmelt green iron group, available at http://direct.argusmedia.com/newsandanalysis/article/cs-22012324.\" target=\"_parent\"> feedback@argusmedia.com </a></p><p><i> Copyright © 2025. <a href=\"http://www.argusmedia.com/\" target=\"_blank\">Argus Media group</a>. All rights reserved. </i></p></footer>","copyrightHolder":"Argus Media group","copyrightYear":2025,"taxonomy":{"contexts":[{"name":"Fundamentals","children":[{"name":"Supply","children":[]}]}],"regions":[{"name":"Asia-Pacific","children":[{"name":"Australasia","children":[{"name":"Australia","children":[]}]}]}],"sectors":[{"name":"Emissions","children":[{"name":"CO2","children":[]}]},{"name":"Hydrogen","children":[]},{"name":"Metals","children":[{"name":"Ferrous","children":[{"name":"Steel ","children":[]},{"name":"Steelmaking raw materials ","children":[{"name":"Iron ore","children":[]}]}]}]}]},"pullQuote":null,"newsType":"Daily news","language":"en-GB","keywords":null,"isFree":true,"isFeatured":false,"body":"<p class=\"lead\">The Australian government has awarded domestic green iron consortium NeoSmelt — comprising five major metals and energy producers — a A$19.8mn ($13mn) grant to support its development of an electric smelter in Western Australia.</p><p>The grant will support the project's A$48.8mn engineering study, Australian climate change and energy minister Chris Bowen said today. </p><p>NeoSmelt will make a <a href=\"https://direct.argusmedia.com/newsandanalysis/article/2639608\">final investment decision</a> on the project next year. It expects to produce 30,000-40,000 t/yr of low-carbon direct reduction iron at the plant from 2028. The consortium will initially power the site using natural gas, but may later transition to renewable hydrogen. </p><p>NeoSmelt includes many of Australia's largest resource producers. Its founding members are Australian metals producers BlueScope Steel and BHP, and UK-Australian metals producer Rio Tinto. </p><p>Japanese producer Mitsui and Australian energy producer Woodside Energy joined the consortium today, BlueScope chief executive for Australian steel products Tania Archibald said in a statement announcing the grant. </p><p>The Australian government will also support the project through its <a href=\"https://direct.argusmedia.com/newsandanalysis/article/2684927\">A$14bn green hydrogen subsidy scheme</a>, which will enable producers to claim tax credits worth A$2/t of low-carbon hydrogen produced from 2027. </p><p>It is also supporting other low-carbon iron producers through its A$1bn <a href=\"https://direct.argusmedia.com/newsandanalysis/article/2659774\">green iron investment fund</a>, which is designed to support early-stage projects and attract private-sector investment. </p><p class=\"bylines\">By Avinash Govind </p>","lead":"The Australian government has awarded domestic green iron consortium NeoSmelt — comprising five major metals and energy producers — a A$19.8mn ($13mn) grant to support its development of an electric smelter in Western Australia.","cmsId":"22012324","source":"Censhare"}