Resources Technology Showcase: BHP iron ore chief Tim Day not quite as bullish as Twiggy on green dreams

The Big Australian’s iron ore boss has vouched that the technology behind much-vaunted green steel can work, but is highly sceptical that the economics will stack up anytime soon against old school methods.

BHP asset president for WA Iron Ore Tim Day played it coy when pried about what green iron champion and industry competitor Andrew Forrest knows about the nascent sector that others in the industry don’t, simply saying: “I dunno.”

The BHP heavyweight told the Resources Technology Showcase industry forum on Tuesday that getting the costs of smelting iron ore using lower emissions fuels to compete with traditional blast furnaces is at least 10 years away.

But he is confident the actual process can be achieved.

“Can you do it? Of course you can do it,” Mr Day told the audience.

“But then there’s this piece around, does it make sense? Do the economics show up?”

He said it was “very hard” to compete against an established industry. Mr Day also volunteered that making the industry commercial in Australia was proving harder than overseas.

“We’ve got agreements and partnerships with nearly 20 per cent of all steelmakers so we’re heavily invested in green steel to work out (the) new technology and make sure we can find ways to do it as soon possible.

“When it comes to Australia’s perspective we’re investing locally, but the economics are just more complicated . . . because its more expensive.”

BHP’s local horse in the green steel race is NeoSmelt, a joint venture with Rio Tinto and Bluescope Steel, with the trio signed up to build a pilot green iron smelting plant in Kwinana. Woodside Energy will supply the gas.

Fortescue has been pushing ahead with a hydrogen-powered green metal plant at its Christmas Creek hub, with first production due imminently.

The Fortescue founder has been a vocal advocate of the nascent sector and believes it will save the Pilbara from becoming a wasteland amid depleting ore quality.

Also at the RTS event, the Big Australian’s iron ore boss wagered that prices for the State’s lifeblood commodity would likely drift downwards as mountains of new supply enter the market.