Calix – ZESTY Green Iron Demonstration Plant (Retitled and Updated)

September 29th, 2025

Calix – ZESTY Green Iron Demonstration Plant

Calix is progressing development of its ZESTY H-DRI process to the demonstration plant stage.

Main proponents:

Calix

Main end-use classification:

Industrial use – iron making

Status:

Under development

Estimated cost:

AUD$1.96 million (pre-FEED and FEED study)

AUD$89.93 million – demonstration plant (includes construction, commissioning and initial testing)

Other involvement:

 

Production details:

Hydrogen utilisation volumes during campaign testing to be confirmed

Location:

To be confirmed

Announced funding:

AUD$947,000 – Australian Renewable Energy Agency (ARENA -pre-FEED and FEED study)

AUD$44.88 million – Australian Renewable Energy Agency (ARENA – demonstration plant)

Project description

(Note: This project was previously titled ‘Calix Zero Emissions Steel Technology-pre-FEED and FEED study’)

A May 2024 Newsletter article and July 2025 deep-dive webinar describe the Calix Zero Emissions Steel Technology (ZESTY) process, including the use of hydrogen for the direction reduction of iron ore to (sponge) iron.

The ZESTY development pathway is progressing through several phases:

  • Phase 1: Laboratory study: completed – a laboratory study was conducted to determine the theoretical validity of the technology)
  • Phase 2: Pilot plant: completed – the Calix (modified) e-CFC plant at Bacchus Marsh in Victoria tested the ZESTY process using various ores to produce hydrogen-direct reduced iron (H-DRI) at an equivalent throughput of 2,000 tonnes per annum.
  • Phase 3: Pre-FEED & FEED study: completed – delivery of a pre-Front-End Engineering and Design (pre-FEED) and FEED study for a 30,000 tonnes per annum hydrogen-direct reduced iron (H-DRI) demonstration plant using the ZESTY process. This phase was supported by an ARENA funding award of AUD$947,000 (announced November 2022). In February 2024, Calix announced that it had completed the FEED study for a 30,000 tonnes ZESTY H-DRI demonstration plant.
  • Phase 4: Demonstration Plant: under development – the subject of this description. This phase is supported by an ARENA funding award of AUD$44.88 million (announced July 2025). This phase aims to advance the technical and commercial readiness of the ZESTY process, with the main objectives being:
    • Construct, commission and operate a 30,000 tonne per annum H-DRI / HBI demonstration plant.
    • Deliver a Pre-FEED / FEED study for a commercial scale ZESTY plant.

The source of renewables-based hydrogen for the demonstration plant and the associated location for the plant is under consideration by the project proponent. The amount of hydrogen required is to be sufficient to enable iron production at the nameplate capacity of the demonstration plant during periods of campaign (testing) operations.

Other aspects of the project as described by Calix in its media release accompanying the July 2025 ARENA funding award include (but not limited to):

  • A final investment decision is targeted for 2026, with the procurement of major capital items subject to further financing and detailed design and engineering.
  • Subject to matching funding being secured, procurement and construction is targeted to commence in 2026, followed by a staged commissioning and operations phase that is planned to commence in 2028.

 

Reviewed (reviewed by the project proponent): September 2025

Note: As the location of the demonstration plant remains under consideration, until such time as the site for the demonstration plant is announced publicly, it is not possible for the project to be displayed on the HyResource projects map.