The first-of-its-kind green steel facility will be located in New South Wales, Australia, and will serve as a global standard for producing steel without greenhouse gas emissions.
In a significant step toward sustainable steel production, Australia’s Greensteel has signed a contract with the global leader in steelmaking technology, Danieli, to construct a rolling mill with a capacity of 600,000 tons per year, fully powered by green hydrogen.
This innovative green steel facility will be located in New South Wales, Australia, and will serve as a global benchmark for steel production without greenhouse gas emissions. Danieli, an Italy-based metals processing and supply company, is collaborating with Australia’s Greensteel to develop this plant, with operations expected to commence by the end of 2026.
Giacomo Mareschi, CEO of the Danieli Group, stated: “The partnership with Greensteel Australia on this hydrogen-powered rolling mill is truly inspiring. Greensteel Australia’s commitment to producing clean and sustainable steel is steering the industry toward a greener future. We are delighted to support their vision with our technology and work together to set a new benchmark for zero-emission steel production.”
Mona Ibrahim, President of Greensteel Australia, added: “At Greensteel Australia, we are proud to collaborate with Danieli on this groundbreaking project. By utilizing 100% green hydrogen, we are not just building a new rolling mill but also setting a new paradigm for clean steel production. This project underscores our commitment to producing steel in a way that is better for the environment and future generations.”
The production of iron and steel is essential for economic prosperity and development, but it is also responsible for 8% of global carbon dioxide emissions. Iron and steel production are considered carbon-intensive industries that are difficult to decarbonize. According to the International Energy Agency’s report, greenhouse gas emissions from steel production must be reduced by 50% by 2050 and continue to decrease in order for the world to meet its climate goals.
This facility features preheating furnaces that are fully powered by green hydrogen, eliminating nitrogen oxide (NOx) emissions and completely removing reliance on fossil fuels. The advanced plant is designed to produce rebar in diameters ranging from 10 to 50 millimeters and complex coils from 8 to 32 millimeters, primarily for the Australian construction market.
Under the announced agreement, Danieli will provide quality materials, knowledge sharing, and specialized technologies to ensure the successful operation of the steel production process. Danieli is a globally renowned company for its expertise in delivering over 500 rolling mills and innovations in sustainable steel production.
This advanced facility will integrate Danieli’s sixth-generation horizontal billet welding technology, enabling seamless rolling and continuous material flow to 14 uncoated rolling stands. With a quick-change system, this design maximizes production efficiency and minimizes downtime during size changes. The six-pass quick finishing block enhances performance, rolling smaller sizes at speeds of up to 40 meters per second and feeding rod and coil lines.
In addition to advanced production technologies, the plant will feature mechanical systems and electrical automation, overhead cranes, water purification systems, compressed air facilities, and a fully equipped rolling workshop. The use of automation will reduce overhead costs and optimize safety and efficiency.
This prominent project highlights the leadership of Greensteel Australia and Danieli in the global transition to industrial practices without greenhouse gas emissions.
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