Rio Tinto and telecommunications‑equipment maker Calix have signed a joint development agreement to build a Zesty™ Green Iron demonstration plant in Kwinana, south of Perth. The plant will use Calix’s electric‑heating and hydrogen‑reduction process to convert lower‑grade Pilbara iron ore into green iron, a key feedstock for low‑emissions steelmaking. The project is slated to begin construction in 2026, with commissioning expected in 2028.
Under the agreement, Rio Tinto will contribute more than A$35 million in cash and in‑kind services, including A$8 million in direct funding and the supply of up to 10,000 tonnes of Pilbara ore for testing. The Australian Renewable Energy Agency has provided a conditional grant of up to A$44.9 million, which will be released as Rio Tinto meets defined milestones. Rio Tinto will also provide engineering support, advocacy, and a non‑exclusive global license for the Zesty technology, positioning the company to influence the commercial rollout of the system.
Calix, best known for its broadband platforms and services, is using its core expertise in high‑power, high‑frequency electronics to enter the green‑steel market. The partnership marks a significant diversification for Calix, which has traditionally focused on telecommunications infrastructure. By applying its technology to industrial decarbonization, Calix aims to create a new revenue stream while leveraging its existing manufacturing and supply‑chain capabilities.
The deal signals a strategic pivot for Rio Tinto away from its earlier BioIron research, which was paused to reduce technical risk. Calix’s hydrogen‑based approach is considered a more mature pathway, allowing Rio Tinto to accelerate its decarbonization agenda and meet the 69% share of Scope 3 emissions that steelmaking represents. The demonstration plant is expected to reach a final investment decision in 2026, with commercial‑scale deployment projected for the early 2030s, aligning with Australia’s broader green‑iron initiatives and the federal Green Iron Investment Fund.
"The Zesty technology offers a scalable, low‑carbon alternative to traditional blast‑furnace steelmaking," said Matthew Holcz, chief executive of Rio Tinto Iron Ore. "By partnering with Calix, we can bring this technology to market faster and reduce our Scope 3 emissions in a cost‑effective way." Phil Hodgson, CEO of Calix, added, "Our joint development in Kwinana demonstrates how telecom‑grade technology can be repurposed for industrial decarbonization, opening a new frontier for our company and for Australia’s green‑steel ambitions."
The announcement comes amid a wave of green‑steel projects in Western Australia, including the NeoSmelt pilot plant and the federal Green Iron Investment Fund. The partnership positions Rio Tinto and Calix at the forefront of a sector that could capture a significant share of the global steel market as demand for low‑emission products rises. The collaboration also underscores the role of public‑private partnerships in de‑risking emerging technologies, with the ARENA grant providing a critical financial cushion for early‑stage deployment.
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