Calix has secured $44.9 million from the Australian Renewable Energy Agency (ARENA) to build a demonstration plant for its Zero Emissions Steel Technology (ZESTY).
The project aims to decarbonise iron production using renewable power and hydrogen.
The facility will target annual output of up to 30,000 tonnes of hydrogen direct reduced iron (HDRI) and hot briquetted iron (HBI), using Calix’s proprietary Flash Calciner system.
ZESTY is designed to minimise hydrogen use and eliminate the need for pelletisation, while operating flexibly with intermittent renewable electricity.
The grant builds on previous ARENA-backed engineering studies and will also fund early-stage design work for a potential commercial-scale plant.
The demonstration plant intends to test ZESTY’s ability to produce low-emissions iron using a process that can ramp output in line with variable renewable generation – a feature ARENA sees as critical for future-ready industrial systems.
“As the world’s largest producer and exporter of iron ore, Australia has a critical role in reducing emissions across the steel value chain,” said ARENA CEO Darren Miller.
“ZESTY is a strong step toward building a low-emissions steel industry at home.”
“What makes ZESTY so compelling is its potential to dramatically lower the amount of hydrogen required to convert iron ore into pure iron,” Miller added.
Calix CEO Phil Hodgson said the technology could help address “one of the world’s hardest to abate emissions sources while adding value to Australia’s biggest export.”
ZESTY is one of several emerging pathways seeking to decarbonise steelmaking, which currently accounts for around 7 to 9 per cent of global CO₂ emissions.
Australia’s abundant renewable energy resources and iron ore reserves are positioning the country as a potential green iron hub.
Founded in 2005, Calix is based in Australia and specialises in high-temperature processing solutions for emissions-intensive sectors including steel, cement, alumina and lithium.