The South Australian Government and GFG Alliance have signed an offtake agreement to explore the potential for a supply of hydrogen from the 250MW electrolyser in Whyalla to support GFG’s transformation to green iron and steel.
GFG has also entered into a memorandum of understanding (MOU) with global energy company Santos for potential long term natural gas supply to its Whyalla operations.
GFG Alliance Executive Chairman, Sanjeev Gupta, said that being a key offtaker for the supply of green hydrogen from the world’s largest electrolyser being built in Whyalla is a privilege for GFG.
“This step is vital in our plans to produce premium green iron and steel in Whyalla, and a huge boost to Australia’s determination to lead the world in decarbonisation,” Mr Gupta said.
“I celebrate our collaboration with the South Australian Government which serves to underscore Premier Malinauskas’s commitment to environmental sustainability and economic prosperity for the Upper Spencer Gulf.
“The State Government’s bold approach to leading the charge on green hydrogen is an example to Australia and the rest of the world in kick starting this vital shift in energy transition which will benefit generations to come.
“This agreement gives us and our stakeholders confidence to ramp up our efforts and commitment to the production of our four billion tonnes of high-quality magnetite, the establishment of a state-of-the-art green iron and green steel plant which will ultimately be powered by renewable energy and green hydrogen.”
Mr Gupta said that these industries will put Whyalla on the map, bringing high quality jobs and prosperity to the region, establishing it as a global leader in the production of green iron and steel.
“I am also pleased to be working with a strong partner in Santos on natural gas supply for our operations, necessary for the transition to hydrogen. Furthermore, we are happy to support and applaud the pursuit of Santos’s Carbon Capture and Storage ambitions which could play a significant role in reducing residual emissions from our steelworks.”
Liberty Primary Steel and Mining CEO, Sandip Biswas, said, “Whyalla has all the elements required to lead the green steel industry in one location – vast reserves of high-quality magnetite, abundant potential for the generation of renewable energy, a cape-sized capable seaport, a skilled workforce, extensive existing infrastructure, a supportive community, collaborative governments, and now secured a pathway to offtake natural gas and decarbonisation collaboration.”
These announcements are in addition to a recent grant of $63.2 million from the Federal Government’s Powering the Regions Fund to support the purchase and installation of an electric arc furnace and a $50 million grant committed by the South Australian Government pending approval for use towards the EAF.
GFG said that it looks forward to continuing to work with the South Australian Government on its vision for the Upper Spencer Gulf and Eyre Peninsula, and to opportunities to work with the Federal Government on its ambition for Australia to become a renewable energy superpower.
