Generation Steel and BHP sign renewable energy deal for Collie mill

Generation Steel has entered into a binding Power Purchase Agreement (PPA) with BHP to supply renewable electricity for a proposed steel mill in Collie, Western Australia. The agreement aims to power the facility entirely with renewable energy from the start of operations, supporting the company’s goal of low-emissions steel production.

The proposed mill, which represents the first new steel mill built in Australia in over 35 years, involves an $850 million investment. It will utilize an electric arc furnace (EAF) to recycle Australian scrap steel into products such as reinforcing bar, wire rod, and merchant bar for the construction industry. The facility is expected to have a capacity of 450,000 tonnes per year.

Under the agreement, the mill will draw approximately 250,000 megawatt hours of electricity annually from BHP’s surplus renewable energy arrangements, specifically utilizing capacity from the Flat Rocks wind farm and the Merredin solar farm. The contracts are expected to take effect around 2029, coinciding with the planned shutdown of coal-fired generators in the Collie region.