On September 18, a productive meeting was held at the Italian Consulate in Perth with Nicola Patrizi, Managing Director of Danieli Asia Pacific, and the leaders of Green Steel WA to discuss in detail the project designating Danieli as the technological supplier for the construction of the largest steel production facility in Western Australia.
The plant will be located in the town of Collie, 220 km south of Perth. With a total investment expected to exceed 500 million dollars, the project promises to create 200 highly qualified long-term jobs in Collie, along with up to 2,000 indirect jobs. This development not only represents an important opportunity to reduce carbon emissions from the coal-fired electricity industry in Western Australia, but also marks the first step toward establishing a steel industry dedicated to sustainable steel production in the country.
Currently, Western Australia exports all of its scrap iron abroad, while steel is primarily imported from the eastern Australian states and other countries, especially in Asia. The “green steel” plant will have the capacity to convert 500,000 tons of locally produced scrap iron annually, using renewable electricity to produce construction rebar in compliance with Australian standards. This process will ensure a 99% decarbonization rate and competitive costs. By recycling steel and utilizing renewable energy sources, the plant will be able to reduce CO2 emissions to less than 15% compared to traditional blast furnace production methods. Consequently, the final product will provide builders, businesses, and local projects in the urban, civil, and private construction sectors with a significant opportunity to significantly reduce their CO2 emissions, while also supporting local employment and production. Furthermore, it will help secure supply chains, decreasing reliance on imports in Western Australia.
The project will include a MIDA (Danieli Micromill) plant for local steel supply, which will utilize the most advanced technologies developed by Danieli in the steelmaking field. Among these is the Q-One technology, which will ensure full control and stability of the grid electricity in the electric arc furnace process. This approach will also allow the steelworks to be powered by renewable energy sources. Additionally, a direct and continuous casting and rolling process will be implemented, aimed at ensuring high efficiency and reducing energy consumption and emissions into the atmosphere.
At the same time, Green Steel WA is collaborating with Danieli for the establishment of a direct reduction plant (DRP Energiron) with a capacity of 2.5 million tons per year, which will also be located in Western Australia. Initially powered by natural gas, the plant will progressively transition to using hydrogen as a fuel. This overall project will help avoid emissions exceeding 800,000 tons of CO2 compared to a traditional plant producing steel from iron ore, thus representing a significant step forward toward more sustainable steel production.
The Italian Consul in Perth, Sergio Federico Nicolaci, who presided over the meeting, emphasized “great satisfaction” and assured “maximum institutional support” for Danieli’s projects in Western Australia. He highlighted how the Collie project once again confirms “the leading contribution of Italian technology in the economic diversification process of Australia” and represents the “enduring and undisputed Italian industrial leadership in key sectors” as well as the “commitment to innovation inherent in our industrial system.”