Rio Tinto and Australian technology company Calix have signed a joint development agreement to build a Zero‑Emissions Steel Technology (Zesty™) demonstration plant at Kwinana, south of Perth. The plant will use electric heating and hydrogen reduction to produce green iron from lower‑grade Pilbara ore, a key step toward decarbonising the steel industry.
Under the agreement, Rio Tinto is committing more than A$35 million in cash and in‑kind contributions, including A$8 million in cash paid in tranches. The company will supply up to 10,000 tonnes of Pilbara iron ore for commissioning and initial testing, and will act as a non‑exclusive global marketing agent for the Zesty technology. The partnership also brings support from the Australian Renewable Energy Agency (ARENA), while Calix has secured a separate ARENA grant of up to A$44.9 million for the project.
The deal signals a strategic pause in Rio Tinto’s BioIron research and development at the Kwinana site, as the company focuses resources on the more mature Zesty pathway. BioIron development will continue in partnership with the University of Nottingham and Metso, but the shift reflects the higher technical risk and longer timeline associated with the biomass‑microwave reduction approach. The joint venture aligns with Rio Tinto’s broader decarbonisation agenda and its goal of reducing Scope 3 emissions from steelmaking.
"The world needs low‑emissions steel if it is going to decarbonise, and we continue to look at a range of ways Pilbara iron ores can help to do this as new technologies emerge," said Matthew Holcz, Rio Tinto Iron Ore Chief Executive. Calix CEO Phil Hodgson added, "The Joint Development Agreement with Rio Tinto is a major milestone in the commercialisation of Zesty. It provides cash and hands‑on support, including industry‑leading resources, expertise and market reach to progress the Zesty Demonstration project."
The partnership gives Rio Tinto access to a proven hydrogen‑direct reduction pathway that can be scaled to commercial production, while leveraging its vast Pilbara ore supply. By demonstrating green iron production at Kwinana, the company positions itself to offer low‑emissions steel to global customers and to integrate the output with its NeoSmelt project, which can process the direct‑reduced iron. The project also benefits from ARENA funding, underscoring government support for green technologies in Australia and reinforcing the steel industry’s role in meeting climate targets.
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