"Those savings are equivalent to 14 percent of Australia's energy use and about 10 percent of our greenhouse gas emissions each year."

In entering the collaboration with MCCE, CSIRO has recognized the R&D reputation of the Beijing-based company and its ability to scale-up the technology and introduce it into China - where 60 percent of the world's 300 million tones of iron blast furnace slag is produced each year.

Under the agreement MCCE is to scale-up and demonstrate the technology at industrial scale and, upon success, commercialize it in China and then potentially worldwide.

The agreement is the culmination of more than a decade of DSG technology development by CSIRO and industry partners including Arrium and BlueScope.

This work covered initial design and proof of concept stages through to the construction and operation of prototype DSG pilot plants at small, intermediate and large scales.

"DSG is just one of the CSIRO innovations in sustainable steel production and one of many solutions we have found for national and global challenges in the minerals industry," Law said.

"The DSG project is a good example of reward from continuous R&D investment and we look forward to working closely with MCCE to bring it to full fruition," he said.

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