Sustainable Steel Surge: Government Fuels Green Innovation

AustraliaImage Source: GOV


The federal government allocates A$200 million through the Powering the Regions Fund to boost sustainable steel production at BlueScope's Port Kembla and Liberty Steel’s Whyalla sites. BlueScope receives A$136.8 million for upgrading its No. 6 Blast Furnace to reduce emissions, while Liberty gets A$63.2 million to purchase a low-carbon electric arc furnace. The move aligns with Australia's commitment to clean, green steel, fostering job creation and supporting the transition to low-emission manufacturing.


In a significant stride towards sustainable steel production, the federal government has unveiled a A$200 million grant under the Powering the Regions Fund (PRF). This initiative aims to enhance steelmaking operations at BlueScope's Port Kembla and Liberty Steel’s Whyalla sites, ushering in a new era of environmentally conscious manufacturing.

The grants, a combined A$136.8 million for BlueScope and $63.2 million for Liberty, signify a strategic investment in reducing emissions and fostering the production of low-carbon steel. BlueScope's No. 6 Blast Furnace is set for a reline and upgrade, promising not only emission reduction but also a pathway to even lower-emission steel in the future. Meanwhile, Liberty plans to utilize its grant for the purchase and commissioning of a low-carbon electric arc furnace (EAF), replacing its existing blast furnace. This transition aims to support the manufacturing of green steel and aligns with Liberty's ambitious goal of achieving carbon neutrality by 2030.

Industry Minister Ed Husic emphasized the significance of clean, green Australian-made steel for the nation's future. He highlighted the economic and employment benefits, noting that these initiatives would sustain and create jobs in regional areas.

According to the government statement, the BlueScope project alone is expected to generate approximately 250 new roles during the upgrade and reline phase. Simultaneously, the Whyalla upgrade at Liberty Steel is predicted to boost jobs by around 24% over the next five years, fostering economic growth in the region.

BlueScope's decision to proceed with the reline of its No. 6 blast furnace aligns with the industry's evolution, as the No. 5 Blast Furnace approaches the conclusion of its operational life between 2026-2030. The anticipated commencement of No. 6 in 2026 positions BlueScope at the forefront of sustainable steel production.

Liberty, part of Sanjeev Gupta's GFG Alliance, had previously secured a contract with supplier Danieli for a 160-tonne electric arc furnace (EAF) in April of the preceding year. The government grants mark a significant step, being the first from the PRF’s Critical Inputs to Clean Energy Industries program, specifically addressing challenges in hard-to-abate sectors like steel.

Energy Minister Chris Bowen emphasized the essential role of steel in the energy transformation, pointing out that 90% of materials in wind turbines are composed of steel and cement. The government's commitment extends beyond the steel sector, with an additional $200 million earmarked for hard-to-abate sectors such as cement, lime, alumina, and aluminum, with project announcements expected in the coming months.

In conclusion, the government's investment in sustainable steel production reflects a commitment to greener manufacturing practices. The grants not only support emission reduction but also position Australia's steel industry to play a pivotal role in the global energy transformation. The focus on job creation and economic growth underscores the broader positive impact of these initiatives on regional communities.


The infusion of A$200 million into sustainable steel production marks a pivotal moment in Australia's journey towards environmentally conscious manufacturing. By supporting upgrades at BlueScope and Liberty Steel, the government not only addresses emissions but also propels the nation towards a future defined by clean, green steel. The anticipated job creation and economic benefits further reinforce the positive impact of these initiatives on both industry and regional communities.

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