Renewable-Powered Collie Steel Mill Planned

Generation Steel, an Australian firm formerly known as Green Steel WA, has signed a binding Power Purchase Agreement (PPA) with mining giant BHP to supply all of the electricity needed for its proposed steel mill in Collie, Western Australia. The mill will be the first new steel plant built in Australia in more than 35 years and the first to contract its entire power demand from renewable sources. Under the agreement, electricity will be sourced from BHP’s Flat Rocks wind farm and Merredin solar farm, with the renewable contracts slated to commence around 2029, coinciding with the planned shutdown of the state’s remaining coal-fired generators.

First new steel mill in Australia in 35 years to be the first to be powered by 100 per cent renewables Generation Steel secures renewable energy agreement with BHP for proposed Collie steel mill New steel mill to be backed by renewables PPA

The Collie project is part of a broader shift in Australia’s heavy-industry sector toward low-carbon energy. The country’s two largest energy-intensive users—the Tomago aluminium smelter in New South Wales and the Boyne Island smelter and refineries in Queensland—are also moving away from coal. In the Pilbara, Fortescue Metals Group is building more than 2 GW of wind and solar capacity plus battery storage to eliminate fossil fuels from its iron-ore operations. Generation Steel’s founders—Rajan Aggarwal, Don Johnston and Azlan Ho—cited the imminent loss of coal power in Western Australia as a key driver for the renewable-only approach.

First new steel mill in Australia in 35 years to be the first to be powered by 100 per cent renewables

• Investment: $850 million planned for an electric-arc furnace (EAF) mill.

First new steel mill in Australia in 35 years to be the first to be powered by 100 per cent renewables

• Production target: 450,000 tonnes of reinforcing-bar steel per year.

First new steel mill in Australia in 35 years to be the first to be powered by 100 per cent renewables

• Electricity demand: ~250,000 MWh annually, equivalent to roughly 100 MW of wind and solar capacity.

First new steel mill in Australia in 35 years to be the first to be powered by 100 per cent renewables

• Expected emissions: about 272 kg CO2e per tonne of steel, roughly one-third of the Australian market “sustainability brand” and the global average.

First new steel mill in Australia in 35 years to be the first to be powered by 100 per cent renewables

• Only three existing steel producers worldwide—Nucor Sedalia (US), Seven Steel Nordic and Celsa (Europe)—currently deliver rebar with emissions below 300 kg CO2e per tonne.

First new steel mill in Australia in 35 years to be the first to be powered by 100 per cent renewables

Generation Steel described the PPA as a milestone that advances its ambition to operate one of the world’s lowest-emissions steelmaking facilities. The company emphasized that coupling 100 % renewable electricity with 100 % recycled Australian scrap will position the mill at the forefront of low-carbon steel production. BHP highlighted the agreement as a way to unlock additional value from surplus renewable energy, noting that the collaboration could generate broader community and economic benefits beyond BHP’s own operations.

Generation Steel secures renewable energy agreement with BHP for proposed Collie steel mill New steel mill to be backed by renewables PPA First new steel mill in Australia in 35 years to be the first to be powered by 100 per cent renewables

• “Being powered entirely by renewable energy from day one is a defining moment for Generation Steel,” — Rajan Aggarwal, co-founder and executive

First new steel mill in Australia in 35 years to be the first to be powered by 100 per cent renewables

• “I am most proud of how our teams have worked together to convert surplus renewable energy into opportunities that support the wider community and economy,” — Europe. Rob Whitham, the manager of commercial energy and utilities at BHP WA Nickel

Generation Steel secures renewable energy agreement with BHP for proposed Collie steel mill