BHP and Hatch have signed an agreement to design an electric smelting furnace pilot (ESF) plant in Australia. The facility will demonstrate a pathway to lower carbon dioxide (CO2) intensity in steel production using iron ore from BHP’s Pilbara mines for BHP’s steelmaking customers. The ESF is capable of producing steel from iron ore using renewable electricity and hydrogen, replacing coking coal, which can reduce CO2 emissions by over 80%. The pilot facility will be used to test and optimize production of iron from the ESF, and to collaborate with steel producers and technology providers to share learnings. BHP and Hatch will assess several locations in Australia for the proposed facility.