Australian steelmaker BlueScope Steel has announced that the pre-feasibility assessment of the reline works of the blast furnace No.6 at the Port Kembla Steelworks is well progressed as part of a multi-stage capital investment evaluation process, with further updates to be provided during the first half of financial year 2022. The pre-feasibility assessments commenced in February this year. The highly indicative capital cost is around $700-800 million, likely to be spent over the financial year 2023 to 2025.
According to the company’s statement, this pre-feasibility work aligns with BlueScope’s climate strategy. As part of the reline assessment, the latest technologies available to reduce greenhouse gas emissions intensity will be evaluated as an integral part of the project. BlueScope aims to achieve net zero greenhouse gas emissions by 2050. Mark Vassella, managing director and CEO of the company, said that BlueScope will allocate up to $150 million over the next five years for near-term action on climate change. The blast furnace No. 6 is an option for the future configuration of the Port Kembla Steelworks, once the blast furnace No. 5 comes to the end of its current operation, which is expected to occur between 2026 and 2030.
Meanwhile, BlueScope is investigating the use of biochar in the blast furnace as a replacement for a proportion of pulverized coal. The company is also seeking government co-funding for this and other projects focused on hydrogen injection in the blast furnace.