The Australian federal government will provide up to A$26mn ($18.6mn) to green metals startup Element Zero to support the development of an electricity-powered green iron processing pilot project, ministers said in a joint statement on 2 September.
Element Zero's A$53.6mn pilot project aims to produce low-emissions high purity iron using different types of Australian iron ore, including hematite and magnetite, as feedstock.
The federal funding comes from Australia's Future Made in Australia Innovation Fund, part of the government's efforts to develop a domestic green manufacturing sector under the Australian Renewable Energy Agency.
The proposed project will be delivered in two stages. The first pilot plant will be capable of producing around 1t/d of iron, while a second phase — subject to formal review — will scale production up to 10t/d.
The pilot will test a low-emissions manufacturing process known as electrochemical ironmaking, which is powered by electricity and utilises molten salts to produce high purity iron ore without using coal.
The plant will operate at temperatures of 400-450°C, lower than those used in typical ironmaking processes, the ministers said. The low operating temperature will allow the project to run on intermittent renewable energy sources, including wind, solar and hydropower, according to the company's website.
