In a groundbreaking initiative hailed as the country's most significant emissions reduction project to date, NZ Steel's Glenbrook plant is set to undergo a transformative change. The installation of an electric arc furnace, funded in part by the government, will revolutionize the steel industry by halving coal usage and replacing it with electricity to recycle scrap steel. Prime Minister Mr. Chris Hipkins made the eagerly anticipated announcement during a media briefing at the site in south Auckland. NZ Steel, the sole producer of flat rolled steel products in New Zealand, plays a vital role in the building, construction, manufacturing, and agricultural sectors. With an annual production capacity of 670,000 tonnes, NZ Steel's products, including roofing and structural beams, contribute significantly to the nation's infrastructure.Under the agreement, NZ Steel will receive up to N$140 million from the Government Investment in Decarbonising Industry Fund. The funding will support the base build of the project, with an additional commissioning incentive of N$10 million if the furnace is operational by January 2027. Moreover, NZ Steel stands to receive N$20 million in performance funding if it achieves an additional 800,000 metric tons of emissions reductions by December 31, 2030.
In a groundbreaking initiative hailed as the country's most significant emissions reduction project to date, NZ Steel's Glenbrook plant is set to undergo a transformative change. The installation of an electric arc furnace, funded in part by the government, will revolutionize the steel industry by halving coal usage and replacing it with electricity to recycle scrap steel. Prime Minister Mr. Chris Hipkins made the eagerly anticipated announcement during a media briefing at the site in south Auckland. NZ Steel, the sole producer of flat rolled steel products in New Zealand, plays a vital role in the building, construction, manufacturing, and agricultural sectors. With an annual production capacity of 670,000 tonnes, NZ Steel's products, including roofing and structural beams, contribute significantly to the nation's infrastructure.Under the agreement, NZ Steel will receive up to N$140 million from the Government Investment in Decarbonising Industry Fund. The funding will support the base build of the project, with an additional commissioning incentive of N$10 million if the furnace is operational by January 2027. Moreover, NZ Steel stands to receive N$20 million in performance funding if it achieves an additional 800,000 metric tons of emissions reductions by December 31, 2030.
