The group is committed to decarbonizing steel production at its Australian facilities
British industrial group GFG Alliance has signed a new agreement with the South Australian government to supply green hydrogen to its local steelworks from a 250 MW electrolyser under construction near the town of Wyalla. This is reported from RenewablesNow.
The South Australian government intends to build a A$593 million ($390.1 million) center, which will house an electrolyser and hydrogen storage facilities. Its commercial operation is scheduled for the beginning of 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 tons of high-quality magnetite, create a state-of-the-art DRI and a green steel plant that It will ultimately be powered by renewable energy and green hydrogen,” said Sanjeev Gupta, Executive Chairman of the 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 for the production of green steel. .
The steel plant, 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 supply volumes considered in 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 value of the grant is A$200 million, 32% of which will be allocated to Liberty Whyalla.
