New steel mill to be backed by renewables PPA

Rendered image of Generation Steel's proposed Collie Steel Mill
Rendered image of the proposed Collie Steel Mill (Image: Generation Steel)

Generation Steel has entered into a binding Power Purchase Agreement (PPA) with BHP to support the renewable energy requirements of its proposed steel mill in Collie in Western Australia.

The Collie Steel Mill is a proposed low-emissions, green steel recycling plant developed by Generation Steel—formerly known as Green Steel of WA. It marks the first new steel mill to be built in Australia in 35 years.

Related article: Fortescue produces first hot metal with electric smelting

Under the agreement, renewable electricity will be supplied from operating solar and wind generation sources, supporting Generation Steel’s ambition to establish one of the world’s lowest-emissions steelmaking operations.

Generation Steel co-founder and executive director Rajan Aggarwal said, “Being powered entirely by renewable energy from day one is a defining moment for Generation Steel.

“It confirms our position at the forefront of low-carbon steel production and demonstrates that world-class, high-quality steel, and genuine decarbonisation are not just compatible—they’re the future of the industry.”

BHP WA Nickel manager commercial energy and utilities Rob Whitham said the agreement showed how BHP could unlock additional value from the renewable energy arrangements established to support its business.

“I am most proud of how our teams have worked together to convert surplus renewable energy into opportunities that support the wider community and economy,” Whitham said.

Related article: Time to capitalise on Australia’s green metals opportunity

Further details regarding the proposed steel mill development will be announced by Generation Steel shortly.

Stay on top of the latest energy news and insights by subscribing to our free weekly e-newsletter and digital magazine.

Previous articleWork begins on Western Australia’s biggest wind farm