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Released May 23, 2024 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The Australian government is looking into a two-year delay at one of its leading green steel projects and an ongoing production shutdown at the Whyalla steelworks.
The steelworks at Upper Spencer Gulf, which is owned by global metals giant GFG Alliance (London, England), is home to a $500 million project to replace the existing coal-fired blast furnace with a lower-carbon electric arc furnace (EAF) and associated infrastructure. The company claimed that the new furnace will transition the plant to low-carbon steel and boost projection from the current 1 million tonnes per annum (mtpa) to more than 1.5 mtpa. However, the 2025 startup date originally proposed has now been pushed out to 2027. The state and federal governments have committed more than $110 million to the project and are concerned about delays to the delivery of the EAF and also blast furnace issues that have shut down production at the plant since mid-March. To that end, south Australia's Energy Minister, Tom Koutsantonis, traveled to the manufacturer, Danieli Group (Buttrio, Italy) in north-west Italy and met with GFG in the Netherlands, to discover what the hold up is.
Speaking to ABC News before the visit, he said: "I want to eyeball Danieli. I want to know where it's up to, how far away it is, where we are with integration, engineering and design." Previously he described the importance of the plant saying "it is the last structural steel manufacturer in the country. If we lose Whyalla, Australia loses its capability to make rail lines, loses its capability to make structural steel -- and that is unacceptable in a first world country."
GFG Alliance, the steel empire run by Sanjeev Gupta, has been embroiled in financial and legal troubles since 2021 when its main lender Greensill Capital, collapsed. At the time, GFG owed Greensill around $5 billion and years of legal battles have impacted GFG's corporate stability and impacted many projects. Following his visit to Europe, Koutsantonis explained: "I have told Mr. Gupta and GFG that I think South Australians in general have had enough of the big reveals. They've had enough of the big talk. It's time for both of us to get our heads down and bum up and get on with it. This is very important to the people of South Australia and the nation. Whyalla is the last structural steel manufacturer of long products in the nation. It is important for our sovereign capability that this steelworks continues and operates. The Commonwealth Government committed $62.5 million, we've got $50 million, I've met with Danieli. This electric arc furnace and DRI facility can be built and be built quickly. It's now just a matter of commitment."
Liberty Primary Metals, the Australian division of GFG Alliance, said it is making progress on the final design of its DRI-EAF industrial complex in Whyalla and outlined where testing was up to with magnetite iron ore from a nearby mine. The goal is to process local magnetite ore to produce low carbon iron. The new furnace will initially use a mix of natural gas and green hydrogen as the reducing agent, before fully transitioning to green hydrogen as it becomes available at scale. The company stated: "Liberty is making progress on the final design of its DRI-EAF industrial complex in Whyalla. Collaborating with leading equipment manufacturer Danieli, Liberty plans to install a cutting-edge electric arc furnace equipped with Q-One technology, allowing for a direct feed from renewable energy sources to melt scrap and DRI, a groundbreaking innovation. The updated design now integrates the DRI unit and hot charging capability to feed the sophisticated Q-One electric arc furnace. The final option engineering is expected to be completed by the end of May 2024. The combined DRI-EAF project is anticipated to be completed in 2027."
Executive Chairman Sanjeev Gupta, remained upbeat about the Whyalla project: "From Europe to Australia, the steel industry is undergoing a remarkable revolution. As we bid farewell to outdated and highly polluting coke ovens and blast furnaces, our industry is on the brink of an extraordinary transformation to green iron and green steel production based on DRI-EAF technologies. This is especially the case in Whyalla, South Australia. We are excited to announce that our high-grade magnetite has been validated as among the best in the world, positioning Whyalla and Australia at the forefront of this revolution. With the final design and layout of our DRI-EAF nearing completion, we are eager to commence the construction phase of this remarkable project, which we aim to complete within three years. The unwavering support of the South Australian Government, with their trailblazing hydrogen initiative, further strengthens Whyalla's advantages."
Eventually, the plan will be for the steelworks to run fully on green hydrogen. Industrial Info is tracking the world's largest green hydrogen plant project in Whyalla, which will also supply the steelworks. In March, the South Australian government chose GE Vernova (Atlanta, Georgia) to supply four turbines that will run 100% on hydrogen. The project will boast a 250-megawatt (MW) hydrogen electrolyser powered by renewables, a hydrogen storage facility and a 200-MW power plant based around four of GE's aeroderivative LM6000Velox turbine generators, each equipped with 50 MW LM6000 turbines. It will be the first plant in the world using GE turbines to run fully on green hydrogen. For additional information, see March 8, 2024, article - Australia Selects Turbines for Largest Green Hydrogen Project.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The steelworks at Upper Spencer Gulf, which is owned by global metals giant GFG Alliance (London, England), is home to a $500 million project to replace the existing coal-fired blast furnace with a lower-carbon electric arc furnace (EAF) and associated infrastructure. The company claimed that the new furnace will transition the plant to low-carbon steel and boost projection from the current 1 million tonnes per annum (mtpa) to more than 1.5 mtpa. However, the 2025 startup date originally proposed has now been pushed out to 2027. The state and federal governments have committed more than $110 million to the project and are concerned about delays to the delivery of the EAF and also blast furnace issues that have shut down production at the plant since mid-March. To that end, south Australia's Energy Minister, Tom Koutsantonis, traveled to the manufacturer, Danieli Group (Buttrio, Italy) in north-west Italy and met with GFG in the Netherlands, to discover what the hold up is.
Speaking to ABC News before the visit, he said: "I want to eyeball Danieli. I want to know where it's up to, how far away it is, where we are with integration, engineering and design." Previously he described the importance of the plant saying "it is the last structural steel manufacturer in the country. If we lose Whyalla, Australia loses its capability to make rail lines, loses its capability to make structural steel -- and that is unacceptable in a first world country."
GFG Alliance, the steel empire run by Sanjeev Gupta, has been embroiled in financial and legal troubles since 2021 when its main lender Greensill Capital, collapsed. At the time, GFG owed Greensill around $5 billion and years of legal battles have impacted GFG's corporate stability and impacted many projects. Following his visit to Europe, Koutsantonis explained: "I have told Mr. Gupta and GFG that I think South Australians in general have had enough of the big reveals. They've had enough of the big talk. It's time for both of us to get our heads down and bum up and get on with it. This is very important to the people of South Australia and the nation. Whyalla is the last structural steel manufacturer of long products in the nation. It is important for our sovereign capability that this steelworks continues and operates. The Commonwealth Government committed $62.5 million, we've got $50 million, I've met with Danieli. This electric arc furnace and DRI facility can be built and be built quickly. It's now just a matter of commitment."
Liberty Primary Metals, the Australian division of GFG Alliance, said it is making progress on the final design of its DRI-EAF industrial complex in Whyalla and outlined where testing was up to with magnetite iron ore from a nearby mine. The goal is to process local magnetite ore to produce low carbon iron. The new furnace will initially use a mix of natural gas and green hydrogen as the reducing agent, before fully transitioning to green hydrogen as it becomes available at scale. The company stated: "Liberty is making progress on the final design of its DRI-EAF industrial complex in Whyalla. Collaborating with leading equipment manufacturer Danieli, Liberty plans to install a cutting-edge electric arc furnace equipped with Q-One technology, allowing for a direct feed from renewable energy sources to melt scrap and DRI, a groundbreaking innovation. The updated design now integrates the DRI unit and hot charging capability to feed the sophisticated Q-One electric arc furnace. The final option engineering is expected to be completed by the end of May 2024. The combined DRI-EAF project is anticipated to be completed in 2027."
Executive Chairman Sanjeev Gupta, remained upbeat about the Whyalla project: "From Europe to Australia, the steel industry is undergoing a remarkable revolution. As we bid farewell to outdated and highly polluting coke ovens and blast furnaces, our industry is on the brink of an extraordinary transformation to green iron and green steel production based on DRI-EAF technologies. This is especially the case in Whyalla, South Australia. We are excited to announce that our high-grade magnetite has been validated as among the best in the world, positioning Whyalla and Australia at the forefront of this revolution. With the final design and layout of our DRI-EAF nearing completion, we are eager to commence the construction phase of this remarkable project, which we aim to complete within three years. The unwavering support of the South Australian Government, with their trailblazing hydrogen initiative, further strengthens Whyalla's advantages."
Eventually, the plan will be for the steelworks to run fully on green hydrogen. Industrial Info is tracking the world's largest green hydrogen plant project in Whyalla, which will also supply the steelworks. In March, the South Australian government chose GE Vernova (Atlanta, Georgia) to supply four turbines that will run 100% on hydrogen. The project will boast a 250-megawatt (MW) hydrogen electrolyser powered by renewables, a hydrogen storage facility and a 200-MW power plant based around four of GE's aeroderivative LM6000Velox turbine generators, each equipped with 50 MW LM6000 turbines. It will be the first plant in the world using GE turbines to run fully on green hydrogen. For additional information, see March 8, 2024, article - Australia Selects Turbines for Largest Green Hydrogen Project.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
