GFG Alliance plans to receive green hydrogen from a hub in South Australia

The British industrial group GFG Alliance has signed a new agreement with the South Australian government to supply green hydrogen to its local steel mill from a 250 MW electrolyser under construction near the town of Wyalla. This is reported by RenewablesNow.

The South Australian government intends to build a hub worth A$593 million ($390.1 million), which will house an electrolyzer and hydrogen storage facilities. Its commercial operation is planned for early 2026.

«The agreement gives us and our stakeholders confidence that we will be able to build on our efforts and commitments to produce 4 billion tonnes of high quality magnetite, create a state-of-the-art DRI and green steel plant that will ultimately be powered by renewable energy and green hydrogen,» said Sanjeev Gupta, Executive Chairman of GFG Alliance.

GFG has also entered into a memorandum of understanding with Australian energy company Santos for a potential long-term supply of natural gas to the Whyalla plant, combined with carbon capture and storage (CCS) capabilities, which is necessary for the transition to green steel production.

The steelmaker, which is operated by Liberty Primary Steel, a member of the GFG Alliance, already uses a small amount of green hydrogen supplied by BOC Gases. However, the much larger volumes of supply being considered under the new agreement will facilitate direct iron reduction at Whyalla.

Liberty Steel will receive funds as part of the Australian government’s assistance to two local steel companies to accelerate their transition to low-carbon steel production. The total subsidy amount is A$200 million, 32% of which will be allocated to Liberty Whyalla.