AUCKLAND, NEW ZEALAND: BlueScope Steel has announced an accelerated feasibility study to build a new electric arc furnace (EAF) at its New Zealand Steel (NZ Steel) works at Glenbrook, south of Auckland. The EAF, targeted to be operational by 2026, will be co-funded by the New Zealand Government to produce lower emissions steel.

The EAF will reduce NZ Steel’s Scope 1 and 2 greenhouse gas emissions by at least 45 per cent — 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 Decarbonising Industry (GIDI) fund and NZ Steel will invest around NZ$160 million in capital and transition spend.

BlueScope’s Managing Director and CEO, Mr Mark Vassella, attended the announcement ceremony with the New Zealand Prime Minister and Cabinet colleagues at Glenbrook.

“From our perspective, this project will be a great step forward, by securing long-term, lower emissions steelmaking in New Zealand,” Mr Vassella said. “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 decarbonisation project.”

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,” Mr Vassella said.

Delivery of the project including co-funding by the New Zealand Government is subject to completion of the feasibility study to the satisfaction of the New Zealand Government and the BlueScope Board, and obtaining certain statutory and regulatory approvals.

About BlueScope Steel

BlueScope Steel is one of the world’s largest steel producers, with operations in Australia, New Zealand, and the United States. The company produces a range of steel products, including hot rolled coils, cold rolled coils, galvanised steel, and stainless steel.

BlueScope is committed to reducing its environmental impact and has set ambitious targets to reduce its greenhouse gas emissions. The company is investing in a range of technologies to decarbonise its operations, including electric arc furnaces and renewable energy.

About the Government Investment in Decarbonising Industry (GIDI) Fund

The GIDI Fund is a $300 million fund established by the New Zealand Government to support the decarbonisation of New Zealand’s industrial sector. The fund is designed to help businesses invest in new technologies and processes that can reduce their greenhouse gas emissions.

The GIDI Fund has been welcomed by businesses and environmental groups. The fund is seen as a key tool to help New Zealand transition to a low-carbon economy.

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