Sydney-based Greensteel Australia has taken a significant step toward establishing a low-carbon steel mill, finalizing a $1.6 billion infrastructure order with global steelmaking leader Danieli Group. They signed a contract with them to purchase stages two and three of its proposed low-carbon steel mill. Sydney-based Greensteel has identified Whyalla as its top choice for the new mill’s location, adjacent to the existing steelworks, but the company is still evaluating other potential sites.
The current order comprises a direct reduced iron (DRI) facility, two electric arc furnaces, a structural steel rolling mill, and an additional rolling mill dedicated to reinforced steel (rebar) production. However, Greensteel placed an order with Danielli last year for the fabrication of a reinforced steel rolling mill.
Greensteel stated that infrastructure is to be completed by late 2026 or early 2027, with the Greensteel president and executive director Mena Ibrahim signing the contract at an event in Adelaide today.
“Danieli is the world’s leading provider of advanced, high-technology steelmaking infrastructure,” Ibrahim said. “Bringing their expertise to Australia will immediately position this country among the ranks of the most advanced steel suppliers globally. We have agreed on an expedited delivery timetable with Danieli that will allow us to bring our steelmaking capability onstream within two years.
According to him, the project will provide over 1500 permanent job opportunities, and the construction could employ over 2500 workers. The facility is expected to produce Ultra-long sections of steel that are meant to be used in high-speed rail, a product of demand in Australia.
“These are critical steps forward, especially given the uncertainty caused by the collapse of the existing steel works in Whyalla and the gap it leaves in Australia’s sovereign steel capability,” he said.
“The output would be four times that of Whyalla’s existing capability, but on a smaller plot of land, just 70 hectares compared to Whyalla’s 1000-hectare footprint,” said Greensteel. “Further, the DRI plant can operate on hydrogen rather than coking coal to refine magnetite into iron pellets.”
Ibrahim ensures that Whyalla offers everything they need, including an experienced workforce, a high-quality magnetite resource, port facilities, alongside reliable renewable energy.
“Greensteel’s proposed mill provides a clear way forward for the region. With the existing steelworks in administration, we believe our mill can be built in parallel, enabling a smooth transition for the workforce at the conclusion of that process.
Danieli Group CEO Giacomo Mareschi expressed that the company was excited to partner with Greensteel. “From the very beginning, we have been impressed with the boldness of Greensteel’s vision and their commitment to the industrial decarbonisation agenda,” Mareschi said.