Australian steelmaker BlueScope Steel has announced that it will build a new electric arc furnace at its New Zealand Steel (NZ Steel) works at Glenbrook, New Zealand, for around NZD 300 million ($181.82 million).
The new electric arc furnace, which will reduce NZ Steel’s Scope 1 and 2 emissions by at least 45 percent, is scheduled to be operational by 2026. The new furnace will replace the existing oxygen steelmaking furnace and two of the four coal-fueled furnaces.
The furnace will be co-funded by the New Zealand government. The government will contribute up to NZD 140 million ($84.85 million) through the Government Investment in Decarbonizing Industry fund.
BlueScope aims to become carbon-neutral by 2050.