Calix and Perdaman Group have signed a heads of agreement to develop a hydrogen supply solution for the former’s Zesty Green Iron Demonstration Project in Kwinana, Western Australia (WA).
The agreement names Perdaman as the hydrogen development partner for the project. The initial focus will be on engineering and design of the hydrogen infrastructure necessary to move the project towards a final investment decision (FID).
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Under the terms of the agreement, Perdaman will carry out an engineering study to define the requirements and costs involved in providing hydrogen to the Zesty project.
Calix has granted Perdaman a 12-month exclusivity period to work on developing this supply solution.
During this time, both companies plan to work together with stakeholders to advance the project through its planning and decision-making stages.
Longer-term arrangements for hydrogen supply for ongoing operations remain subject to further negotiation.
Hydrogen is a key input for the Zesty project, which aims to demonstrate the production of hydrogen direct reduced iron (H-DRI) using electric heating and hydrogen as a reductant from iron ore.
Establishing a reliable and cost-effective hydrogen supply is seen as essential for the project to reach its next internal milestone.
Calix managing director and CEO Phil Hodgson said: “Developing a viable hydrogen supply solution is a critical step towards enabling the Zesty Project to reach FID. Establishing Perdaman as our hydrogen partner is therefore an important milestone, adding engineering capability and hydrogen-sector expertise to the project.
“The partnership provides a clear pathway forward and brings us a step closer to demonstrating a globally leading solution for low-emissions iron production in Western Australia.”
The Zesty Green Iron Demonstration Project is designed to build and operate a plant capable of producing up to 30,000t per annum of H-DRI.
Backed by a $32.3m (A$44.9m) grant from the Australian Renewable Energy Agency and more than A$35m in contributions from joint development partner Rio Tinto, the project is currently in the detailed design engineering phase.
Its aim is to provide a facility able to convert a variety of iron ores to H-DRI, serving both Australian and international producers and advancing low-emissions steel-making.
Perdaman founding chairman and managing director Vikas Rambal said: “Perdaman’s vision to create a better tomorrow aligns perfectly with the Zesty project. We will bring our hydrogen expertise and delivery capability together to help make Zesty a global success.”
