Port Hedland Green Steel Project Approved

According to Australian media, after the Western Australia Environmental Protection Authority approved the Port Hedland Iron (PHI) project, a $4 billion hot briquetted iron (HBI) plant will be built in Port Hedland.

It is understood that with the support of South Korean steelmaker POSCO, the plant will be constructed within the Boodarie Strategic Industrial Area, nearly 10 kilometers southwest of Port Hedland. In the future, iron ore from the Pilbara can be processed into HBI and iron ore pellets.

The Port Hedland Iron project includes a pellet plant and an HBI plant, which will use 3-3.5 million mt of iron ore annually. The project will utilize MIDREX Flex technology, enabling the use of hydrogen as a reducing agent, marking a key first step in decarbonizing the steel value chain.

Supporting infrastructure for the project includes hydrogen production and storage, a nitrogen plant, handling and storage facilities, power transmission, carbon capture, and administrative and workshop buildings. It is expected to produce approximately 2 million mt of HBI and 1 million mt of pellet products annually.

It is understood that HBI production uses direct reduction technology rather than the traditional blast furnace method. This process removes oxygen from the iron ore without melting it, producing a purified iron product, which is then compressed into shaped briquettes.

Unlike conventional iron production, direct reduction allows for precise control of the chemical composition, resulting in a product with much higher iron content than raw ore. The briquetting process converts this purified iron into dense, compact units that are resistant to oxidation during transportation and storage.

According to research institutions, HBI is a higher-value product, capable of doubling Australia's iron ore export revenue. However, the annual consumption of 3-3.5 million mt of iron ore by the Port Hedland Iron project is a drop in the bucket compared to the 600 million mt of iron ore produced annually in Western Australia.