British billionaire Sanjeev Gupta’s GFG Alliance, through its business Liberty Steel, has announced the phase out of coal-based steelmaking at its Whyalla plant.
The news was announced with the signing of a supply contract for a 160-tonne low carbon emissions (low carbon) electric arc furnace from equipment manufacturer Danieli. The new furnace will lift steelmaking capacity at Whyalla from 1 million tonnes per annum (mtpa) to over 1.5mtpa.
Related article: Time to capitalise on Australia’s green metals opportunity
The supply contract enables Danieli to commission the construction of the cutting-edge electric arc furnace, which 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. Danieli’s patented Q-One technology, the first of its kind, provides capability for a direct feed from renewable power sources which could help to eliminate indirect emissions from Whyalla’s new steelmaking facility.
The installation of the electric arc furnace and associated infrastructure is an investment project that will be funded by the business with an application to be made to the Whyalla Steel Taskforce for a $50 million grant that was committed and funded by the South Australian government in 2016 to be used towards this investment, pending approvals. Engineering work is already advanced and 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 1.8mtpa 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, and to serve the growing global demand for low carbon DRI.
These developments are important building blocks in Whyalla’s CN30 plan which lies at the heart of LIBERTY’s global decarbonisation strategy to be carbon neutral by 2030. Low carbon and green DRI made in Whyalla will feed LIBERTY’s network of electric arc furnaces in Australia, Asia, Europe, and the UK helping to decarbonise steel supply chains across the world.
Executive chair Sanjeev Gupta said, “Today 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 decarbonise steel supply chains globally.
Related article: Australia will have a carbon price for industry—and it may infuse greater climate action across the economy
“Whyalla has some of the best conditions to make low carbon iron and steel anywhere in the world and with our magnetite expansion plans, coupled with South Australia’s endless resource for renewable energy and green hydrogen, the potential for Whyalla has no bounds.
“Whyalla is very proud of the role blast furnace production has played in the history and development of this incredible town and in supporting Australian infrastructure development, but its phasing out allows us to usher in a new era for sustainable iron and steel production that will take employment and prosperity here to new heights.”
