UK-based GFG Alliance (GFG) has announced its updated Whyalla Greensteel Transformation Plan which replaces the blast furnace with a 1.2 million mt per year capacity at its Whyalla steelworks in South Australia with a larger capacity direct reduced iron (DRI) plant and a new electric arc furnace (EAF) in order to produce low-emission greensteel from GFG’s abundant South Australian magnetite resource and domestic steel scrap and secure the long-term future of its South Australian based steelworks. Construction will start next year and will take three years to be completed.
GFG stated that the new DRI plant will be powered by natural gas before being converted to hydrogen produced from GFG’s own renewable energy projects. It will cut down the site’s dependence on coking coal, SteelOrbis understands. The company also noted that these new facilities will produce advanced steel long products for the Australian construction, critical infrastructure and mining industries in the future.
GFG Alliance CEO Sanjeev Gupta said, “This exciting plan will not only transform the Whyalla business into an internationally-competitive steel manufacturer, it will be our first primary steel plant to be transformed to greensteel, helping fulfil our ambition to become the world’s largest carbon-neutral steel producer by 2030.”
Moreover, Gupta said, “We will more than double the value-added steel products we make with our new plant, capturing the growing infrastructure requirements of Australia, which are currently being covered by imports.” He noted that the company has invested over $60 million in the engineering and design work for this project so far and now will take the next steps of finalizing funding and commencing construction.