South Australian steel industry and Whyalla Steelworks

South Australia is leading the Green Iron and Greensteel charge by working with GFG Alliance, owner of the Whyalla Steelworks, to create a globally competitive and sustainable industry.

GFG have an ambition to become a carbon-neutral steelmaker by 2030 (CN30), by transitioning the business away from using the traditional blast furnace, and further reducing the carbon emissions of electric arc furnace’s using renewable electrical energy. GFG also plans to develop a Direction Reduction Plant to produce green iron briquettes at the Whyalla Steelworks which will initially use natural gas as it transitions to hydrogen in the future.

In April 2023, GFG Alliance announced the phase-out of coal-based steelmaking at its Whyalla steelworks, signing a supply contract for a $485 million low carbon electric arc furnace. The purchase represents yet another major step in the re-industrialisation of the Upper Spencer Gulf via decarbonisation, with the investment taking place alongside the South Australian Government’s Hydrogen Jobs Plan.

The Whyalla Steelworks currently directly and indirectly employs around 3,000 South Australians and supports local businesses. The full transformation under Whyalla CN30 is expected to grow the total permanent workforce numbers over the next 7 years as well as adding significant job opportunities during the construction phase. Keeping the Whyalla Steelworks operational through programs like the GREENSTEEL Academy | GFG Alliance keeps the Whyalla community and Upper Spencer Gulf region thriving.

Steel Task Force

In 2015 the Steel Task Force was established to support Whyalla's mining, smelting, and manufacturing operations following the Steelworks entering Administration. The Steel Task Force is led by South Australian corporate director Bruce Carter.

The South Australian government made a commitment to provide $50 million to support co-investment in capital infrastructure to secure the sustainable future of the Whyalla Steelworks. The installation of the electric arc furnace and associated infrastructure is an investment project that will be funded by the business with an application to be made to the Whyalla Steel Taskforce for a $50 million grant that was committed and funded by the South Australian government in 2016 to be used towards this investment, pending approvals. In February 2022 the South Australian government announced it had approved the Whyalla Steelworks Operational Efficiency Improvements Fund Guidelines to co-finance operational efficiency projects at the Whyalla Integrated Steelworks.

GFG Alliance and the Steel Task Force have worked closely on proposed investment projects and upgrades to the existing plant for which the South Australian government grant will apply. These upgrades are in addition to the significant investment GFG Alliance has already made in plant and equipment to improve the efficiency of the Whyalla Steelworks and mining operations.

To facilitate the transformation of the Whyalla business, the Steel Task Force regularly liaises with the Commonwealth Government to discuss the best options to keep moving forward.