Funding from the Australian Government will go towards the installation of a new electric arc furnace at Liberty Steel's Whyalla plant
The Australian government has agreed a subsidy of A$63.2 million ($41.5 million) to decarbonize the Liberty Steel steel plant in South Australia, owned by steel magnate Sanjeev Gupta. This was reported by Nasdaq.
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 is for the Liberty Whyalla plant in South Australia.
«This $200 million investment in the steel industry is about securing the long-term future of the steel industry in Australia. We want to make sure that products important to our economic future, such as green steel, are made in Australia, but this requires the introduction of innovative technologies and new ways of smelting steel that will decarbonize our industry,» commented Energy Minister Chris Bowen.
The funds will be used to purchase and commission a new electric arc furnace at the Whyalla steel plant. In addition to the new furnace, Liberty plans to expand its magnetite ore project.
Another A$136.8 million was awarded to Bluescope Steel. The investment will be used to modernize a blast furnace at the Port Kembla steel plant on the east coast of Australia.
Australia has also pledged to provide A$200 million in subsidies for the cement and lime sectors, as well as the aluminum industry.
As GMK Center reported earlier, in April 2023, Liberty Steel announced the signing of a contract with Italy’s Danieli to supply a 160-ton electric arc furnace (EAF) with low carbon emissions for its Wyalusing plant in Australia. The new EAF will increase production capacity from 1 million tons to more than 1.5 million tons per year. Construction of the furnace is scheduled to be completed in 2025, replacing the existing coke oven and blast furnace.