Steel is one of the most important materials for the transition to a clean energy economy. It is used to build renewable energy infrastructure, efficient buildings, and low-emission transport systems. However, steel production is also a major source of greenhouse gas emissions, accounting for about 7% of global emissions in 2019.
That’s why the Albanese Government is committed to helping Australian steelmakers reduce their emissions and stay competitive in the global market. Through the Powering the Regions Fund (PRF), the government is providing $200 million in grants to two leading steel companies. These companies includes BlueScope Steel Limited and Liberty Steel Australia, to support their energy transformation projects.
BlueScope will receive $136.8 million to upgrade and reline its No. 6 Blast Furnace at the Port Kembla Steelworks in New South Wales. This project will not only maintain domestic production and secure thousands of jobs, but also reduce emissions by about 10% per tonne of steel. Moreover, enable future pathways to lower-emissions steelmaking.
Renewable electricity and recycled scrap metal to produce green steel
Liberty will receive $63.2 million to replace its traditional blast furnace with a low carbon electric arc furnace (EAF) at the Whyalla Steelworks in South Australia. This project will help Liberty achieve its goal of carbon neutrality by 2030, as the EAF will use renewable electricity and recycled scrap metal to produce green steel with up to 90% lower emissions than conventional methods.
These grants are part of the PRF’s Critical Inputs to Clean Energy Industries program, which aims to support hard-to-abate sectors like steel that are essential for the energy transition. By investing in these projects, the Albanese Government is demonstrating its vision for a low-carbon future that creates jobs, boosts manufacturing, and strengthens Australia’s position as a leader in clean energy.
