According to BHP, electric smelting furnaces can make iron or steel using renewable electricity and hydrogen, replacing coking coal, when paired with direct reduction. Based on estimates, the technology could yield CO₂ reductions of more than 80% using Pilbara iron ores, BHP said. 

BHP and Hatch will assess locations for the furnace, which will be used to test and optimize the process. BHP said it hopes to collaborate with steel producers and technology providers “to generate and share learnings with the aim of accelerating scale-up of ESF plant designs.”  

“We see the ESF process as a critical breakthrough in significantly reducing the carbon emissions intensity of steel production and one that provides an opportunity for iron ore from our Pilbara mines,” said BHP chief commercial officer Vandita Pant. “The steel industry has identified the ESF as a viable option to use a wider range of raw materials and steel companies globally are looking to build commercial-scale ESF plants as part of their CO₂ emission reduction roadmaps.”

BHP will be working with a leader in electric smelting as Hatch has a long history of applying the technology to primary copper, nickel, ferro-alloys and iron production. 
 
"Throughout the company's six-decade history, Hatch has built most of the high-power electric smelting furnaces operating in industry today in both circular and rectangular configurations. Building on their long-term relationship, BHP selected Hatch for its proven ability to design robust pilot facilities with a focus on successful commercial scale-up," Hatch said in a statement.

Joe Petrolito, Hatch’s managing director for bulk metals said the firm is excited to collaborate with BHP on the effort.

"This project marks a significant milestone in the pursuit of decarbonization within a challenging sector that underpins global infrastructure and progress,” he said.