Major Milestone Reached in Achieving Carbon Neutrality by 2030

Whyalla Phases Out Coal-Based Steelmaking

It’s Whyalla’s time to shine! GFG Alliance marked a major step forward in achieving its ambitious CN30 plan, aimed at achieving carbon neutrality by 2030 and taking a leadership position in the production of green iron and steel. Along with Sanjeev, the South Australian Premier, Peter Malinauskas and Federal Minister for Industry, Ed Husic were on hand to announce the phase-out of coal-based steelmaking in Whyalla with the company’s investment in low-carbon steelmaking technologies.

We have signed a supply contract for a 160-tonne electric arc furnace from Danieli, a leading equipment provider and an existing partner on the Ostrava hybrid furnace project. This state-of-the-art furnace is expected to increase steelmaking capacity in Whyalla to 1.5 million tonnes per annum and reduce scope one emissions by around 90% once installed.

Danieli’s ground-breaking Q-One technology provides the capability for a direct feed from renewable power sources, giving the company the potential to eliminate indirect emissions. The furnace will be fed by a combination of domestic scrap and DRI (low carbon iron) produced in Whyalla. The project is expected to complete within 2-3 years, during which time the aged coke ovens and blast furnace will be phased out.

The company has also engaged global equipment suppliers for the installation of a 1.8mtpa Direct Reduction Plant (DRP) that will process the local magnetite into Direct Reduction Iron (DRI). Low-carbon DRI can then be fed into Whyalla’s new electric arc furnace in combination with scrap to make high-quality steel for Australian infrastructure markets and serve global demand for low-carbon DRI.

The DRP will initially use a combination of natural gas and green hydrogen as fuel before transitioning fully to green hydrogen to eliminate CO2 emissions from the process. Green hydrogen is expected to become available in 2025-26 through the South Australian Government’s 250MW hydrogen electrolyser project to be built in Whyalla.

Whyalla’s journey to this point has been one of determination and perseverance. Through the strength of its people and community, the company has gone from being loss-making to generating profits with the ability to reinvest in its operations.

With its natural advantages in high-grade magnetite, renewable energy potential, and existing infrastructure, Whyalla has a unique opportunity to take a global lead in green iron and steel production. By 2030, the company aims to produce up to 10mtpa of low-carbon and green DRI in Whyalla to feed its network of electric arc furnaces around the world, placing it at the heart of its global decarbonisation strategy (CN30).