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15 December 2024

Supporting
New Zealand’s climate transition

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In 2023, we announced that New Zealand Steel is to build an electric arc furnace (EAF) to secure the future of lower GHG emission steelmaking at Glenbrook Steelworks. To be co-funded by the New Zealand Government, the new EAF is projected to start commissioning by the end of 2025.

This case study gives a snapshot of the positive effect the EAF will have on New Zealand's carbon footprint, and BlueScope making progress toward its goal to achieve net zero greenhouse gas emissions by 2050, a goal that is highly dependent on several enablers. For more information on our net zero goal and enablers, visit our Steelmaking page.

Our focus on reducing New Zealand’s carbon footprint

New Zealand Steel’s new EAF will replace the existing Glenbrook steelmaking process, whilst retaining approximately 50 per cent of the ironmaking capacity at the plant. The EAF will be fed by a combination of large amounts of scrap and 50 per cent less iron than used today.

The site's Scope 1 and 2 greenhouse gas emissions are expected to reduce by up to 55 per cent, and New Zealand's overall country emissions by one per cent. According to common practice, we characterise steelmaking GHG emissions in accordance with the GHG Protocol: direct emissions from our operations are referred to as Scope 1; and indirect emissions from the energy we buy are referred to as Scope 2.

Our commitment to the EAF project is due to local supply of domestic scrap steel and electricity from a large renewable grid, and co-investment from the New Zealand Government. With these enablers in place, an EAF is the right solution for New Zealand Steel.

BlueScope already operates low emission intensive EAF steelmaking technology at its mini-mill in North America, where scrap - the key raw material - is processed through an EAF (referred to as 'secondary' steelmaking). Our integrated steelworks in New Zealand and Australia use higher emission intensive technologies referred to as 'primary' steelmaking, because they both first produce iron which is then used to produce steel. Go to our Steelmaking page for more on our three steelworks and how each is working to enable lower emission steelmaking.

Learn more about our steelmaking

Glenbrook is vitally important to the region 

  • New Zealand Steel is the only fully integrated steel producer in New Zealand, using locally sourced ironsand to manufacture up to 670,000 tonnes of steel slab and billet a year at the Glenbrook Steelworks, located south of Auckland.

  • In addition to New Zealand Steel, the combined New Zealand & Pacific Islands (NZPI) business comprises Waikato North Head ironsand mine, Pacific Steel and the Pacific Islands businesses located in Fiji, New Caledonia and Vanuatu.

  • NZPI, with a workforce of 1,500 people, produces a range of flat and long steel finished products for the New Zealand and Pacific regional construction, manufacturing, infrastructure, packaging and agriculture segments.

Our transformative solution to lower carbon emissions

Our current process

New Zealand Steel’s integrated steel plant at the Glenbrook Steelworks uses direct reduced ironmaking (DRI) and basic oxygen furnace (BOF) steelmaking technologies. 

Ironmaking to reduce the iron from its raw material, ironsand, is done in a kiln and melter process. The iron is then converted into steel in an oxygen steelmaking vessel (KOBM). Coal is the reductant in the ironmaking process to produce the iron. This process was designed by New Zealand Steel to suit the specific qualities of ironsand as a raw material.

Glenbrook’s unique ironmaking processes use local ironsand, along with coal and limestone, which is heated and dried in one of four multi-hearth furnaces. It is then fed into one of four reduction kilns, where hot gases convert 80 per cent of it to a DRI metallic iron product, which then passes through melters to produce molten iron ready for steelmaking via oxygen steelmaking.

An oxygen steelmaking furnace (KOBM) converts the molten iron from the melters, with added scrap, into steel. To refine further, ferro-alloys are added to bring the steel composition up to its required specification, and the molten steel is then transferred to one of two continuous casters, for casting into slabs or billets.  

Our current process

New Zealand Steel’s integrated steel plant at the Glenbrook Steelworks uses direct reduced ironmaking (DRI) and basic oxygen furnace (BOF) steelmaking technologies. 

Ironmaking to reduce the iron from its raw material, ironsand, is done in a kiln and melter process. The iron is then converted into steel in an oxygen steelmaking vessel (KOBM). Coal is the reductant in the ironmaking process to produce the iron. This process was designed by New Zealand Steel to suit the specific qualities of ironsand as a raw material.

A new EAF - the right decision

New Zealand Steel is well placed with access to electricity generated from renewable sources and opportunities to use local scrap that is currently exported:

  • EAFs rely on large amounts of scrap steel and high quantities of electricity to produce steel.
  • EAFs usually produce lower carbon GHG emissions than traditional integrated 'primary' steelmaking operations, because the higher scrap volumes used in the EAF process displace quantities of iron required, which is the most emissions intensive part of the process. It’s important to note that scrap steel only exists because the steel was first created in a primary steelmaking process.
  • Emissions reductions are further enhanced when electricity is powered by renewable energy.

More emissions intensive process units will be removed:

  • The KOBM steelmaking unit will be completely replaced.
  • Half of the existing ironmaking units will no longer be required (two kilns and one melter).

Visualising the transfomation in our process diagram and in pictures

Value generated from Day 1

Following commissioning, planned to start by the end of 2025, the EAF will achieve the following outcomes, in the process securing the future of steelmaking at Glenbrook and supporting New Zealand's net zero goals.

Up to 55% reduction in NZS greenhouse gas emissions

New Zealand Steel's emissions more than halved, contributing to BlueScope’s net zero goal by 2050.

Approximately 50% less coal used at Glenbrook’s plant

Coal usage halved, with approximately 50% of ironmaking being displaced by the EAF process

NZS CO2e reduced to 1.6 or better, below world average of 1.9

Raw steel emissions intensity (tonnes CO2e per tonne raw steel produced) nearly halved, reducing further with increasing scrap input.

New Zealand scrap export being reduced by approximately 50%

Moving to maximise scrap usage in NZ rather than exporting, which incurs cost and carbon miles.

Up to 1 million tonne reduction off Glenbrook’s carbon footprint

New Zealand’s footprint shrinks by 1%, equivalent to taking at least 300,000 cars off the road permanently.

The electrification of steelmaking

Steelmaking powered by electricity sourced from New Zealand’s predominantly renewable grid.

Did you know?

In 2018, BlueScope set a mid-term target to reduce emissions intensity across our steelmaking plants by 12 per cent by 2030. In FY2024, BlueScope reported a 12.0 per cent reduction in aggregated steelmaking emissions intensity against our FY2018 baseline (1.639 down to 1.443 tCO2e per tonne crude steel), which aligns with our 2030 target. This was primarily driven by the ramp-up of a third EAF at North Star, and operating and process efficiencies at PKSW and Glenbrook.  

Looking ahead, the 2025/6 commissioning and ramp up of a new EAF in New Zealand, together with debottlenecking at North Star and general efficiency improvements across all steelmaking sites, will contribute to further lowering steelmaking emissions intensity. For more on Glenbrook's and BlueScope's emissions trends, see our Climate Action Report.

1 In FY2024, the GHG emissions calculation approach for steelmaking was updated to align with recently updated National Greenhouse and Energy Reporting Scheme (NGERS) and worldsteel requirements for estimating carbon content in ferrous feed. This has resulted in an update to the baseline and each subsequent reporting period. 

In FY2024 we made updates to historical data to correct previous overstatements of Scope 2 emissions from FY2018, which included a restatement to our FY2018 target base year and 2030 target year emissions intensity.

New Zealand Steel 
Managing the $300 million project and investing $160 million.

New Zealand Government 
Investing up to $140 million provided from its Government Investment in Decarbonising Industry (GIDI) Fund which was open for co-funding applications between 2021 and 2023.

Energy providers
Partnership with a largely renewable power producer.

Keys to success - collaboration and co-funding

"This project would never have happened without the support of the Government and other key contributors who recognised the potential and had the commitment to help make it happen.
Steel is infinitely recyclable and this model will make New Zealand as close to self-sufficient as possible using renewable energy to recycle domestic scrap steel, rather than shipping it offshore."

(Robin Davies, Chief Executive New Zealand & Pacific Islands)