Mitsubishi Heavy Industries (MHI) Australia and Primetals Technologies have joined the Heavy Industry Low-Carbon Transition Cooperative Research Centre (HILT CRC) as key partners.
The HILT CRC aims to develop technologies to decarbonise Australia’s heavy industrial sector, leverage the country’s natural endowments in mineral and clean energy resources and seize the opportunity of growing export markets for certified low-carbon products. Over the next 10 years, MHI Australia and Primetals, a member of MHI Group, will contribute financially to the CRC as well as with their experience in iron and steel production to this effort. The companies will focus on research & development of hydrogen-based direct reduction of iron ore. This includes the novel HYFOR (hydrogen-based fine-ore reduction) technology currently being piloted by Primetals in Europe.
Australia has the world’s largest iron ore deposits and is the leading exporter of iron ore. Since the iron and steel sector is responsible for 7%-10% of greenhouse gas emissions globally, Australia has a key role to play in the decarbonisation of the industry. Switching from traditional coal- and coke-based ironmaking processes to hydrogen-based production methods is the only way for the industry to fully decarbonise. Deploying these technologies at scale in Australia could move producers up the value chain and turn the country into a major exporter of low-carbon, direct-reduced iron. This would help Australia meet its obligations under the Paris Agreement and make it easier for the global iron and steel industry to reach net-zero by 2050.
Primetals brings an extensive portfolio of iron ore beneficiation, pelletising, sintering and iron ore reduction technologies. It has been involved in the deployment of one-third of the global fleet of MIDREX DRI plants — the now predominant natural gas-based direct-reduction technology, which can be operated on 100% hydrogen. Earlier this year, Primetals commissioned a pilot plant for its HYFOR technology at a site of Austrian steelmaker voestalpine. The next step — building an industrial-scale HYFOR prototype — will be decided by the end of the year.
Dr Alexander Fleischanderl, Technology Officer – Upstream and Head of Eco Technologies at Primetals, said: “Australia has large deposits of iron ore, great potential for green energy, and boasts a dynamic academic and business environment. This puts the country in a unique position in the quest for net-zero by 2050 as a supplier of clean metallics. The HILT-CRC, with its wide range of partners from across the energy, hydrogen, mining, and cement industries, will form a great ecosystem for innovation.”
MHI Australia is an active partner in Australia’s sustainable development efforts with a focus on energy and decarbonisation. MHI is partnering with the Government of New South Wales to propose a comprehensive development plan for the Western Sydney region. MHI is also working with H2U to support the Front-End Engineering and Design (FEED) study for H2U’s Eyre Peninsula Gateway project in South Australia, a greenfield development for the production of green hydrogen and ammonia planned to commercially operate from early 2023. It is anticipated that MHI Australia’s involvement with the HILT-CRC will expand and evolve over time – further contributing to Australia’s industrial development.
Shigeru Nakabayashi, Managing Director of MHI Australia, said: “There is an urgent need to decarbonise the industry sector, which is currently responsible for a significant portion of carbon emissions. MHI Group’s advanced technologies allows us to partner with Australia – a country where iron ore and iron manufacturing are key industries – in efforts to reduce emissions. We are on track to achieving gas turbines fuelled by 100% hydrogen and ammonia by 2025, and we look forward to contributing to HILT-CRC’s aim to decarbonise Australia’s heavy industry sector with our innovative, low-carbon solutions.”