The project will be co-funded by the New Zealand government to produce lower-emissions steel, according to BlueScope. Targeted for operations by 2026, the EAF will reduce NZ Steel’s Scope 1 and 2 emissions by at least 45% by replacing the Glenbrook facility’s existing oxygen steelmaking furnace and two of its four coal-fueled kilns.
 
The New Zealand government will contribute up to NZ$140 million (US$87 million) and NZ Steel will invest approximately NZ$160 million (US$100 million) through the co-funding agreement.
 
“From our perspective, this project will be a great step forward, by securing long-term, lower-emissions steelmaking in New Zealand. This agreement is a landmark deal and shows the power of well-constructed public/private partnerships,” BlueScope’s managing director and chief executive Mark Vassella said. “Investing in an EAF makes sense when there’s a reliable and affordable supply of both firmed renewable energy and domestic scrap steel, along with the right public policy settings and support. That’s what we see in New Zealand and that’s why we are very pleased to progress this significant decarbonization project.”