LIBERTY Steel has announced the phase out of coal-based steelmaking at its Whyalla plant in South Australia, with the signing of a supply contract for an electric arc furnace from equipment manufacturer Danieli.
The new furnace will lift steelmaking capacity at Whyalla from 1Mt/yr to over 1.5Mt/yr.
The electric arc furnace will initially be fed by domestic steel scrap and other Fe-bearing materials to deliver an expected 90% reduction in direct CO2 emissions compared with traditional blast furnace production.
The installation of the electric arc furnace and associated infrastructure is an investment project that will be funded by a $50 million grant that was committed and funded by the South Australian government in 2016, pending approvals. Construction is expected to be completed in 2025, replacing the existing coke ovens and blast furnace.
LIBERTY has also engaged global equipment suppliers for the installation of a 1.8Mt/yr direct reduction plant (DRP) in Whyalla, that can process local magnetite ore to produce low carbon iron (DRI). The DRP will initially use a mix of natural gas and green hydrogen as the reducing agent, before fully transitioning to green hydrogen as it becomes available at scale. The low carbon DRI can then be fed into the electric arc furnace in combination with scrap to produce ‘high quality steel grades for Australian infrastructure projects’, says LIBERTY, and to serve the growing global demand for low carbon DRI.
“[This project] marks the beginning of a new era placing Whyalla at the heart of a global revolution in the steel industry, moving it from being the most polluting of all industries to among the cleanest and greenest.''
Sanjeev Gupta, executive chairman, LIBERTY
Executive chairman of LIBERTY, Sanjeev Gupta, said: “[This project] marks the beginning of a new era placing Whyalla at the heart of a global revolution in the steel industry, moving it from being the most polluting of all industries to among the cleanest and greenest. Through the steps we’re taking to install state of the art low carbon iron and steelmaking technologies here in Whyalla we will not only support Australia’s climate ambitions, but we will help to decarbonize steel supply chains globally.’’
“We’re very excited to see progress on the plan to decarbonize the Whyalla steelworks.''
Peter Malinauskas, premier of South Australia
The premier of South Australia, Peter Malinauskas, commented: “We’re very excited to see progress on the plan to decarbonize the Whyalla steelworks. Whyalla and the broader Upper Spencer Gulf has enormous potential to lead the world in green hydrogen production, helping decarbonize industry across the planet.’’