New Zealand Steel, a subsidiary of Australian steelmaker BlueScope, has announced the first commercial steel production from its new electric arc furnace (EAF) at the Glenbrook steelworks, located approximately 60 km south of Auckland, marking a major milestone in the decarbonization of New Zealand's steel industry.
The new EAF uses renewably generated electricity and locally sourced steel scrap, enabling New Zealand Steel to significantly reduce the carbon intensity of its production. According to the company, the transition will reduce the Glenbrook steelworks' annual greenhouse gas emissions by more than 45 percent while helping secure the long-term future of domestic steelmaking.
First heat produced two years after construction started
The first heat was produced just over two years after construction of the project began in June 2024. More than one million construction hours were completed during the project, with installation carried out while the Glenbrook steelworks remained operational.
During the transition, New Zealand Steel continued producing its usual 650,000 mt of steel, maintaining supplies to New Zealand's infrastructure, construction, manufacturing and agricultural sectors. As part of the new production route, the company has replaced Glenbrook's oxygen steelmaking furnace and two of its four coal-fired kilns, resulting in a 50 percent reduction in coal consumption at the site.
Government provides NZ$140 million in co-investment
The EAF project was developed through a public-private investment partnership, with the New Zealand government providing up to NZ$140 million ($82.17 million) in co-investment.
Contact Energy will supply firmed renewable electricity under a dedicated energy agreement, while long-term agreements with Sims and GMS will secure steel scrap supplies for the new furnace. According to New Zealand Steel, these agreements are expected to redirect hundreds of thousands of tons of scrap previously exported from New Zealand toward domestic recycling at Glenbrook, supporting a more circular domestic steel supply chain.
New Zealand Steel's sister company Pacific Steel will be the first to introduce products manufactured using steel produced through the new route. Later this year, PACIFIC™ will become the company's new standard locally produced steel product, while PACIFIC DCRB® will provide an even lower-carbon option for domestically manufactured reinforcing steel.
