Australian steel maker BlueScope is now transitioning to a full feasibility assessment of a reline and upgrade of the currently mothballed No 6 Blast Furnace at Port Kembla in Australia. A relined 6BF will secure BlueScope’s domestic iron making needs from 2026. The blast furnace campaign life of up to 20 years aligns with BlueScope’s decarbonization strategy and 2050 net zero goals and provides a challenging but credible timeframe for the development, scaling and commercialization of new low emissions technologies.The 6BF reline project scope is broader than a typical reline and the feasibility study will examine a comprehensive upgrade of the blast furnace facility and related infrastructure, including comprehensive technical and environmental upgrades. This includes improved environmental controls for water and air quality management and technologies that will be key enablers of medium to longer-term opportunities to reduce Port Kembla Steelworks’ greenhouse gas intensity. These opportunities are part of a broader suite of climate-related projects at Port Kembla that have the potential to reduce GHG emissions intensity by up to 20 per cent. Partnerships and collaborations with governments, technology vendors and industry bodies will be crucial to making sure we are ready to implement the best available technologies.BlueScope now estimates the preliminary indicative cost for the reline and upgrade project at around AUD 1 billion, up from the initial indicative range of AUD 700-800 million. The increase is due to both a broadening of the scope, including environmental upgrades, and more refined costing of the required works. The estimate includes over AUD 100 million of measures directed at environmental efficiency improvements.Detailed design and execution will be progressed across the next 12 months at a cost of approximately AUD 50 million. Capital expenditure is expected to peak in FY2024 and FY2025 with around 50 per cent of total spend during that period. BlueScope will also proceed to commit during FY2022 to around AUD 120 million of spending on long lead-time items, which are critical for the availability of 6BF iron making capability from 2026.With the intention that 6BF replace the No. 5 Blast Furnace as the source of iron from 2026
Australian steel maker BlueScope is now transitioning to a full feasibility assessment of a reline and upgrade of the currently mothballed No 6 Blast Furnace at Port Kembla in Australia. A relined 6BF will secure BlueScope’s domestic iron making needs from 2026. The blast furnace campaign life of up to 20 years aligns with BlueScope’s decarbonization strategy and 2050 net zero goals and provides a challenging but credible timeframe for the development, scaling and commercialization of new low emissions technologies.The 6BF reline project scope is broader than a typical reline and the feasibility study will examine a comprehensive upgrade of the blast furnace facility and related infrastructure, including comprehensive technical and environmental upgrades. This includes improved environmental controls for water and air quality management and technologies that will be key enablers of medium to longer-term opportunities to reduce Port Kembla Steelworks’ greenhouse gas intensity. These opportunities are part of a broader suite of climate-related projects at Port Kembla that have the potential to reduce GHG emissions intensity by up to 20 per cent. Partnerships and collaborations with governments, technology vendors and industry bodies will be crucial to making sure we are ready to implement the best available technologies.BlueScope now estimates the preliminary indicative cost for the reline and upgrade project at around AUD 1 billion, up from the initial indicative range of AUD 700-800 million. The increase is due to both a broadening of the scope, including environmental upgrades, and more refined costing of the required works. The estimate includes over AUD 100 million of measures directed at environmental efficiency improvements.Detailed design and execution will be progressed across the next 12 months at a cost of approximately AUD 50 million. Capital expenditure is expected to peak in FY2024 and FY2025 with around 50 per cent of total spend during that period. BlueScope will also proceed to commit during FY2022 to around AUD 120 million of spending on long lead-time items, which are critical for the availability of 6BF iron making capability from 2026.With the intention that 6BF replace the No. 5 Blast Furnace as the source of iron from 2026
