‘Green’ steel plant to be built at BlueScope in Port Kembla

The Illawarra region is on the path to a greener future, with BlueScope announcing a green steel plant will be established in Port Kembla in a bid to reduce emissions.

As national debate heats up over the future of the country’s climate policy, the ‘Steel City’ has made its focus clear, with greener technologies and emissions reductions the plan not just for local councils, but also the Illawarra’s major industries.

The nation’s largest steelworks - BlueScope - based in Port Kembla, on Friday announced it would establish a green steel plant to trial new ways to make steel with lower emissions.

BlueScope aims to reduce its emissions by 12 per cent in 2030. Picture: Jonathan Ng

The new plant will be a partnership with Rio Tinto, and will look at using hydrogen to make steel.

“The new collaboration will focus on utilising green hydrogen for direct reduction of Rio Tinto’s Pilbara iron ores, which will then be fed into a melter,” BlueScope chief executive Mark Vassella said.

“This is an important program – one which will need broad support from governments, regulators, customers and suppliers.

“At a time when there is much talk and expectation about decarbonisation, this is an example of two significant Australian businesses getting on with real action. We are putting our dollars and our people right on the front line of addressing climate change.”

The plant is part of BlueScope’s earlier commitment to spend $150 million on greener initiatives, and the steelmaker’s commitment to net zero greenhouse gas emissions across its operations by 2050.

The first phase of the collaboration will be to determine the scale of a pilot plant to be based at the Port Kembla Steelworks, consisting of a hydrogen electrolyser, direct reduction equipment and a melter.

Hydrogen is set to play a role in “future-proofing” the Illawarra region, with Environment Minister and Treasurer Matt Kean recently announcing a “hydrogen hub” for the Illawarra under a new state government plan.

“Hydrogen will be as big as the coal industry in NSW by 2050,” Mr Kean said at the time.

Wollongong MP Paul Scully is pushing for a fleet of hydrogen-powered buses in the Illawarra.

Wollongong state Labor MP Paul Scully has been charting the hydrogen course for the region and played a key role in identifying the region’s potential as a hydrogen hub in negotiations with Mr Kean, and wants to see the Illawarra as a central hub for the state’s hydrogen production operation.

“The steelworks is just one potential user of hydrogen,” he said. “I would like to see Illawarra being central to the hydrogen push.

“We are building an industry from the ground-up and there’s a strong desire from local businesses and workers, the university and researchers who want to be central to this exciting future.”

Mr Scully has launched an online community petition asking Wollongong residents to call on the NSW Government to start a hydrogen bus trial using the free Gong Shuttle Fleet.

“The NSW Government could switch on a hydrogen bus trial in the Illawarra almost immediately by using the free Gong Shuttle fleet.

“I want to clearly demonstrate to the NSW Government that the Wollongong community is ready, willing and able to get involved in delivering the NSW Hydrogen Strategy”, Mr Scully said.

“There are buses made in NSW that are ready to be used in a hydrogen trial. If the NSW Government is serious about using hydrogen to future-proof the Illawarra, then there is no better place to start.”

Mr Scully said while the announcements were a good step in the right direction, the region was yet to see any of the $70 million committed for a local hydrogen hub.

“If we are going to be serious about lowering emissions then you can’t just have big announcements and follow through, it’s been all announcement.”

A plan has been put forward for an offshore wind farm along the Illawarra coast.

The region’s move towards greener technologies is also being backed at a local level, with Wollongong Council recently signalling its support for developing an offshore wind industry off the Illawarra coastline.

The council unanimously supported a proposal from wind farm company OceanX, and committed to ensure it has all the regulatory pathways in place to allow the wind farm to apply for approval.

Last month, OceanX announced its plans for a multi-billion dollar offshore wind farm, choosing the Illawarra coastline for one of its sites.

“Because this is an entirely new industry in Australia, there is currently no approval pathway,” Cr Mithra Cox said.

“After waiting for years, there is finally legislation in the federal parliament that will allow companies to build offshore wind farms.

“It’s unclear whether local government will also need to approve development applications for either the wind farms, or the onshore cables, but it is imperative that this is clarified as soon as possible so that these hugely significant projects aren’t stalled simply because there is no approval pathway.”