Australian flat steel producer BlueScope has announced an accelerated feasibility study to build a new electric arc furnace at its New Zealand Steel (NZ Steel) works at Glenbrook, south of Auckland for around NZ$300 million.
The EAF, targeted to be operational by 2026, will be co-funded by the New Zealand government to produce low-emissions steel-aiming to reduce NZ Steel’s Scope 1 and 2 greenhouse gas emissions by at least 45%– the same as taking more than 300,000 cars off the road. The reductions will be achieved by replacing Glenbrook’s existing oxygen steelmaking furnace and two of the four coal fuelled kilns.
Under the co-funding agreement, the New Zealand government will contribute up to NZ$140 million through the Government Investment in Decarbonizing Industry (GIDI) fund and NZ Steel will invest around NZ$160 million in capital and transition spend.
''This agreement is a landmark deal and shows the power of well-constructed public/private partnerships.”Mark Vassella, BlueScope’s managing director and CEO
BlueScope’s managing director and CEO, Mark Vassella commented: “From our perspective, this project will be a great step forward, by securing long-term, lower emissions steelmaking in New Zealand. This agreement is a landmark deal and shows the power of well-constructed public/private partnerships.”
“Investing in an EAF makes sense when there’s a reliable and affordable supply of both firmed renewable energy and domestic scrap steel, along with the right public policy settings and support. That’s what we see in New Zealand and that’s why we are very pleased to progress this significant decarbonization project,” Vassella added.