Posco gets final approval for $3bn low-carbon iron plant
The Australian government has approved South Korean steelmaker Posco Holdings' plans to develop a low-emissions iron-ore processing plant at a major export hub.
The project at Port Hedland in Western Australia’s Pilbara region is estimated to cost about A$4.4-billion ($3-billion), according to the State government, which approved it in April. Its annual capacity is planned at about two-million tons of iron.
Australia is the world’s biggest exporter of iron-ore but has little domestic processing capacity to produce the element, which is often used to make steel. The government is hoping to add value and support decarbonization in the industry.
A final investment decision on the plant is subject to approval from Posco’s partners, which include Japan’s Marubeni Corporation and China Steel Corporation. The venture has targeted first output from 2031.
Port Hedland Iron will use natural gas instead of coal to reduce its emissions intensity. Eventually, green hydrogen — which has no emissions when burnt — could replace gas.
The steelmaking industry currently contributes about 8% of global carbon dioxide emissions, according to the International Energy Agency. The sector is one of the hardest to decarbonize.
