Australia’s Progressive Green Solutions (PGS) has provisionally chosen Thyssenkrupp Nucera to supply electrolysers for a major hydrogen-based iron project. It should be mentioned that this initiative, set to be the world’s largest green iron facility, is located in Geraldton, Western Australia, and aims to transform the production and export of low-carbon iron products.
The agreement designates Thyssenkrupp Nucera as the preferred supplier for its modular 20 MW alkaline electrolysers. The project’s goal of producing green hydrogen, which will reduce iron ore, hinges on these units. The initial phase of the plant plans to produce up to 7 million tonnes of green iron pellets and 2.5 million tonnes of hot briquetted iron (HBI) each year for export. The long-term vision for the project is even larger, with PGS aiming to increase production to 30 million tonnes of direct reduction (DR)-grade green pellets and 10 million tonnes of green HBI per year.
Hot briquetted iron, a compressed form of direct reduced iron (DRI), is especially appealing for export. It offers a value-added product from Western Australia with a much smaller carbon footprint compared to traditional steel manufacturing methods. This project aligns with global efforts to reduce carbon emissions in heavy industries and positions Australia as an important player in the green commodities market.
The project is currently in the early planning stages and depends on a final investment decision (FID). PGS expects to start exporting its initial green iron volumes by 2029. James Rhee, the Managing Director of PGS, expressed gratitude for the support from the Thyssenkrupp Nucera Australia team. He highlighted the German company’s proven technology and execution skills, saying that his organisation looks forward to further collaboration with Thyssenkrupp Nucera in the next phases of the project.
For Thyssenkrupp Nucera, this partnership is an important milestone, bringing its total project portfolio to over 3 gigawatts (GW) globally. While the firm does not anticipate revenue from the Western Australian project until the 2026/27 financial year, the long-term importance of this deal is significant. The company’s recent third-quarter results painted a different picture, as it had to lower its 2024/25 hydrogen electrolyser sales forecast to €450-€510 million. This change was due to weak order intake and ongoing losses in the segment.
The choice of Thyssenkrupp Nucera by PGS reflects a growing confidence in alkaline electrolysis as a practical and scalable technology for green hydrogen production. The planned 1.4 GW of electrolyser capacity for the Geraldton plant represents one of the largest uses of this technology so far. This scale is crucial for achieving the high production volumes of green iron and HBI that PGS aims for.
The location of the project in Western Australia is also a smart choice, considering the region’s vast renewable energy potential and plentiful iron ore reserves. Using renewable energy to power the electrolysers will be vital to ensuring that the hydrogen produced is truly “green”, thus enabling the low-carbon iron production process.
It should also be mentioned that while the project still requires the FID, its planning and the selection of a key technology partner signify a major step forward. The commitment from both parties shows their determination to tackle the challenges of decarbonising one of the world’s most carbon-heavy industries. It should be mentioned that the upcoming years will be critical as PGS works to finalise its plans and secure the necessary investments to make this landmark facility a reality, with the goal of exporting its first volumes in 2029.
