New Zealand Steel is set to transform its steelmaking operations with a groundbreaking decarbonisation project, supported by a substantial investment from the New Zealand Government.
The initiative will see the installation of a new Electric Arc Furnace at the company’s Glenbrook site, aimed at significantly reducing its carbon emissions and aligning with the country’s climate objectives.
The Government has committed up to $140 million from the Government Investment in Decarbonising Industry Fund to help finance this shift towards more sustainable steel production. The EAF will replace the current steelmaking process, which relies heavily on coal and is expected to slash New Zealand Steel’s greenhouse gas emissions by up to 800,000 tonnes each year.
This reduction represents a major contribution to New Zealand’s overall efforts to achieve net-zero emissions by 2050. The project will not only address environmental concerns but also bolster New Zealand Steel’s global competitiveness, ensuring the long-term viability of steel production in the country.
New Zealand Steel’s CEO, Robin Davies, highlighted the significance of this investment, stating that it will secure the future of steelmaking in New Zealand while also delivering substantial environmental benefits.
“This is a major step forward for New Zealand Steel and for the country as we transition to a low-emissions economy,” Davies said.
The introduction of the EAF is expected to create new opportunities for the company, helping to safeguard jobs and contribute to the local economy. The partnership between New Zealand Steel and the Government showcases the importance of collaboration in driving forward sustainable industrial practices.
Energy and Resources Minister Megan Woods emphasised the Government’s commitment to supporting industries in their decarbonisation efforts. “This investment demonstrates our dedication to reducing industrial emissions and supporting the transition to a clean, green economy,” Woods said.
As New Zealand Steel embarks on this transformative journey, the project sets a new benchmark for sustainability in the industry and reaffirms the company’s role as a leader in New Zealand’s manufacturing sector.