A feasibility study has been completed on the viability, risk, expected costs and other
outcomes and the project now has
the full green light from New Zealand Steel.
The Climate Change Minister James Shaw says the installation
of an electric arc furnace at Glenbrook means New Zealand Steel will cut its
emissions by more than 45 per cent. Image Credit: Wikipedia
New Zealand is on track to have
greener steel as soon as 2026 with New Zealand Steel’s electric arc furnace
project reaching a major milestone today.
The Government announced a conditional
partnership with New Zealand Steel in May to deliver the country’s largest
emissions reduction project to date. Half of the coal being used at Glenbrook
steel mill is being replaced with electricity to recycle and reuse scrap steel.
“It’s an exciting step – this project
will eliminate one per cent of the country’s total annual emissions and deliver
huge benefits for our environment, our industry and to New
Zealanders,” said Minister of Energy and Resources Megan Woods.
“There has been rigorous due diligence
on the project, which has been a critical process before New Zealand Steel
fully embarks on its journey to decarbonise its activities while maintaining
onshore steel production.”
Production using the new furnace is
expected to start as early as mid-2026, in line with agreed commissioning
milestones.
The Climate Change Minister James Shaw says
the installation of an electric arc furnace at Glenbrook means New Zealand
Steel will cut its emissions by more than 45 per cent.
The emissions reductions will be
equivalent to keeping approximately 300,000 cars off the road.
“Once commissioned, the completed
project will reduce Glenbrook’s carbon footprint by 800,000 tonnes per annum.
That means 100% of its annual steel production will be lower carbon from day
one,” said James Shaw.
“This project will mean the production
of very low carbon steel by world standards – that’s a win for New Zealand,”
James Shaw said.
The deal is being part funded with up to
$140 million from the $650 million Government Investment in Decarbonising
Industry (GIDI) Fund, which enables businesses of all sizes to reduce their emissions. The
balance of the $300 million project will be funded directly by New Zealand
Steel.
“The project getting off the ground adds
real momentum in pushing fossil fuels out of the energy system and lowering
emissions through renewables and energy efficiency,” Megan Woods said.
“We’ve come a long way in the last three
years GIDI has been operating with 30 of the 81 process heat focused projects
complete or in commissioning.
“This deal was the first in a number of
bespoke opportunities that the government has been exploring, to deliberately
target appropriate support for New Zealand’s largest emitters where the
greatest emissions reductions can occur quickly,” Megan Woods said.
A second large partnership deal was
announced in July with Fonterra to cut coal use at its dairy factories and
support a 50% reduction in the company’s manufacturing emissions by 2030 –
increasing the existing target of 30%.