Green Hydrogen JV Could Transform Eyre Peninsula Iron Ore Processing
Lincoln Minerals has partnered with Revera Energy to explore a green hydrogen-fueled iron pellet plant at the Eyre Magnetite Project, aiming to advance sustainable steel production in South Australia.
- Memorandum of Understanding signed for joint venture scoping study
- Focus on green hydrogen as alternative fuel for direct reduced iron pellets
- Lincoln’s 1.23 billion tonne magnetite resource targeted for green steel supply
- Revera Energy backed by global investment firm Carlyle
- Feasibility studies planned through 2026 to define commercial structure
Strategic Partnership for Green Steel
Lincoln Minerals (ASX, LML) has taken a significant step towards decarbonizing iron ore processing by signing a Memorandum of Understanding (MOU) with Revera Energy, a clean energy infrastructure platform backed by global investment giant Carlyle. The agreement sets the stage for a potential joint venture to develop a direct reduced iron (DRI) pellet plant powered by green hydrogen on South Australia's Eyre Peninsula.
The collaboration aims to leverage Lincoln’s substantial Eyre Magnetite Project resource, which boasts 1.23 billion tonnes of magnetite capable of producing high-grade iron suitable for DRI processes. Revera Energy brings to the table its Cape Hardy Green Hydrogen Project, a large-scale renewable energy facility designed to produce green hydrogen, which could replace natural gas in the pellet plant’s induration process.
Aligning Resources and Renewable Energy
Lincoln’s CEO Chris Wilcox highlighted the strategic value of this partnership, emphasizing the potential to unlock shareholder value from the magnetite assets without detracting from the company’s copper projects. The MOU outlines a collaborative framework for conducting scoping and feasibility studies over the next 12 months, with the goal of defining an optimal flowsheet, product mix, and commercial structure that could underpin a joint venture.
Revera Energy’s backing by Carlyle, which manages nearly half a trillion US dollars in assets, adds significant financial and operational credibility. The partnership reflects a broader industry trend towards integrating renewable energy solutions into traditional mining and processing operations to meet decarbonization targets.
Project Location and Infrastructure Advantages
The Eyre Magnetite Project benefits from its proximity to established infrastructure including road, rail, port facilities, and high-voltage power, as well as access to a skilled mining workforce. These factors enhance the project's feasibility and attractiveness for development as a green steel supply hub in South Australia.
While the resource data includes some pre-2012 information not yet updated to the latest reporting standards, Lincoln confirms that the mineral resource estimates remain materially unchanged. This provides a solid foundation for advancing technical studies and commercial negotiations.
Looking Ahead
As Lincoln and Revera progress their joint scoping study, the market will be watching closely for indications of project viability, funding arrangements, and timelines. The successful integration of green hydrogen into iron pellet production could position this venture at the forefront of Australia’s emerging green steel industry, aligning with global sustainability imperatives.
Bottom Line?
This MOU marks a promising start to a green steel venture that could reshape iron ore processing in South Australia.
Questions in the middle?
- What are the projected capital costs and funding sources for the green pellet plant?
- How will the joint venture balance development timelines with evolving hydrogen infrastructure?
- What are the potential market impacts if the green iron pellets achieve commercial scale?
