BlueScope has launched an expedited feasibility study for the construction of a new electric arc furnace (EAF) at New Zealand Steel (NZ Steel).
The NZ$300 million EAF will be co-funded by BlueScope and the New Zealand Government to produce low-emission steel by 2026.
According to the company, the EAF will cut NZ Steel’s Scope 1 and 2 greenhouse gas emissions by at least 45%, which is equivalent to removing more than 300,000 automobiles from the road. The reduction will be obtained by replacing Glenbrook’s current oxygen steelmaking furnace as well as two of the four coal-fired kilns.
The New Zealand Government will allocate up to NZ$140 million through the Government Investment in Decarbonising Industry (GIDI) fund, while NZ Steel will invest about NZ$160 million in capital and transition spending under the co-funding arrangement.
BlueScope’s Managing Director and CEO Mark Vassella attended the announcement event at Glenbrook with New Zealand Prime Minister Jacinda Ardern and Cabinet colleagues.
“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,” Vassella said.
Vassella stated that when renewable energy and local scrap steel are inexpensive and dependable, investing in an EAF makes sense.
“This will be a significant step towards BlueScope’s 2030 steelmaking decarbonisation target and goal of being carbon neutral by 2050. The team at NZ Steel and the Government should be very proud of this initiative,” Vassella added.
The project’s delivery, including New Zealand Government co-funding, is contingent on the completion of the feasibility study to the satisfaction of the New Zealand Government and the BlueScope Board, as well as the receipt of relevant legislative and regulatory permissions.
