Ministers Chris Bowen and Ed Husic have welcomed GFG Alliance’s steelmaking company Liberty Steel’s plan to venture into low-carbon steel manufacturing in South Australia.
According to the company’s announcement, Liberty Steel will deliver a new electric furnace and a Direct Reduction Plant, which will use green hydrogen produced by GFG’s own renewable energy projects.
The initiatives are intended to result in a significant reduction in direct CO2 emissions from steelmaking in Whyalla by 2025, according to GFG.
Sanjeev Gupta, executive chairman of GFG, said the company’s steps to install low-carbon iron and steelmaking technology in Whyalla will not only boost Australia’s climate ambitions but also decarbonise steel supply chains globally.
“The world’s climate emergency is regional Australia’s jobs opportunity, and today’s announcement is further proof of that in Whyalla,” Minister Bowen said. “This announcement is exactly the kind of investment that industry will make following our safeguard reforms that safeguard our industry, our climate and our economy.
The Australian government’s recently passed Safeguard Mechanism provided the critical reforms that would future-proof thousands of onshore jobs in key industries, such as steelmaking, and foster Australia’s manufacturing sector, Bowen and Husic said in a joint statement.
The Safeguard Mechanism’s Amendment Bill was passed last week, delivering further economic benefits for Australian industry to decarbonise and thrive as the world moves towards a net zero economy.
Commenting on GFG’s new steelmaking initiatives, Minister Husic said the new investment holds greater potential to position Whyalla towards becoming a world-leading carbon-neutral steel producer.
“This is a tremendous vote of confidence in South Australia’s industrial capability and its capacity to diversify and value-add to locally made products,” Husic added.
The minister said steel manufacturing and fabrication is a crucial part of the Australian economy and will be critical to the country’s plans to rebuild Australia’s domestic industrial base.
“South Australian steel is a top-quality product, and today’s announcement by Liberty will help ensure it also becomes known as an environmentally sustainable product.”
