Around 2,000 jobs will be cut at the Tata Steel foundry in Port Talbot as it makes way for a less polluting electric arc furnace that also requires far less labour
This is a representational image of a steel plant AFP

Australia's Bluescope has teamed up with Israel's Helios Project to develop fast green iron technology aimed at reducing emissions in steel production.

Helios has achieved a breakthrough in iron production in an environmentally friendly way -- the company swaps coal with sodium during the steelmaking process, which ensures only oxygen emissions and cuts back on direct emissions, Reuters reported. BlueScope and Helios plan to launch a pilot project using iron generated at Helios' pilot plants in 2026, the companies announced on Wednesday.

BlueScope Steel's venture fund BlueScopeX signed an MoU aimed at hatching a sustainable method of producing green iron from iron ores and tailings, reported Renew Economy.

Helios technology can effectively process lower-grade iron ores without significant performance degradation, whereas other green iron methods might require higher-grade ores to be economically viable. Helios CEO Jonathan Geifman told AAP the method was "exceptionally fast" compared to other green iron processes.

"We are excited to partner with BlueScopeX to demonstrate the use of Helios Green Iron in their steelmaking operations," said Geifman. "This collaboration represents a significant milestone for our development and hints at the future of the global steel industry, with the adoption of new emerging sustainable innovations like the Helios Cycle."

"Decarbonizing the steel industry is an incredible challenge and we are thrilled to collaborate with companies like Helios that could support us on our journey," said Andrew Garey, Chief Executive of BlueScope's venture fund, BlueScopeX.

Meanwhile, Geifman added that as Helios' green iron technique can operate directly with fine ores and crushed rock, it does not require pig iron or granulated pellets as feedstock. The method can run entirely on electricity and works at much lower temperatures -- much like a domestic oven.