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The Forum > General Discussion > First new steel mill in Australia in 35 years

First new steel mill in Australia in 35 years

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According to Generation Steel:
"The first new steel mill to be be built in Australia in more than 35 years will also be the first to contract its electricity supply entirely from renewables, after striking a deal with mining giant BHP to use capacity it is no longer using.

Generation Steel, an Australian company formerly known as Green Steel WA, intends to invest $850 million to build an electric arc furnace (EAF) mill at Collie, a town that is transitioning away from coal to new green industries in south-west of Western Australia.

It will recycle Australian scrap steel into reinforcing bar, wire rod and merchant bar for construction, and will be the first steel mill to be built in W.A., and the first new steel mill built anywhere in Australia in more than 35 years.

At its targeted capacity of producing 450,000 tonnes a year of reinforcing bar steel (rebar), the Collie mill will need around 250,000 megawatt hours a year of electricity, or nearly 100 megawatts of wind and solar capacity.

It has signed a power purchase agreement with BHP, which had lined up off-take deals for the expansion of its W.A. nickel business that it has now abandoned, at least for the time being. The agreements source power from the Flat Rocks wind farm and the Merredin solar farm.

“Being powered entirely by renewable energy from day one is a defining moment for Generation Steel,” Rajan Aggarwal, the co-founder and executive director of Generation Steel, said in a statement."

The shift to renewables and the move to improved technologies continues unabated it seems.
Posted by WTF? - Not Again, Tuesday, 27 October 2026 7:25:37 AM
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They haven't even started building the plant yet. The Final Investment Decision is still pending.

Let's not get carried away here. Making claims about renewables is required these days to get these things off the ground.

Come back 5 years AFTER it begins production and we'll see if the reality matches the claims.

( or, given what's happened with Snowy 2.0, maybe 10 years after construction begins!!).
Posted by mhaze, Tuesday, 27 October 2026 10:45:43 AM
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It still hasn't reached 'FID' i.e its full realisation is still uncertain.

Think: green hydrogen. Even Snowy 2.0.

There are no 100% renewable steel mills anywhere, and Australia doesn't have a much success with innovation.

It sounds good, but ....
Posted by ttbn, Tuesday, 27 October 2026 10:58:51 AM
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