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Santos Supports Transition to Green Steel at Whyalla Steelworks
Santos Supports Transition to Green Steel at Whyalla Steelworks

Santos Supports Transition to Green Steel at Whyalla Steelworks

  • 27-Feb-2024 3:57 PM
  • Journalist: Nina Jiang

Santos has officially entered into a memorandum of understanding (MOU) with Liberty Primary Metals Australia Pty Ltd, a significant industrial gas user and part of the GFG Alliance, based in South Australia. The purpose of this MOU is to initiate discussions on the provision of gas, coupled with carbon capture and storage (CCS) opportunities. The objective is to actively support the transformation of Whyalla Steelworks into a green steel production facility.

Kevin Gallagher, the Managing Director and CEO of Santos, expressed that the MOU is centered around supplying abated natural gas, a crucial step in assisting the GFG Alliance's decarbonization efforts. This collaboration is particularly aimed at facilitating the GFG Alliance's transition to a Direct Reduction Plant (DRP) in Whyalla, capable of processing local magnetite ore to produce low-carbon iron.

The DRP's initial phase will involve a combination of natural gas and green hydrogen as the reducing agent, with a long-term goal of transitioning entirely to green hydrogen as its availability increases at scale. As part of the MOU, there will be a joint pre-feasibility study conducted on CCS opportunities, focusing on mitigating emissions from the iron and steel works in Whyalla. This collaboration could potentially make GFG Alliance the first domestic third-party customer for Santos' flagship carbon capture and storage project located at Moomba.

Kevin Gallagher commended the GFG Alliance for its commitment to green steel initiatives and highlighted the significance of utilizing natural gas in combination with CCS as an expedited and cost-effective decarbonization pathway, especially during the period when the development of green hydrogen is underway at scale.

Sanjeev Gupta, the Executive Chairman of GFG Alliance, expressed his satisfaction with the collaboration with Santos, particularly in terms of natural gas supply for their operations, which is vital for the transition to hydrogen. Gupta also expressed support for Santos's ambitions in carbon capture and storage, recognizing its potential role in significantly reducing residual emissions from their steelworks.

Sandip Biswas, CEO of Liberty Primary Steel and Mining, emphasized the advantageous position of Whyalla to lead the green steel industry. Biswas outlined the key elements contributing to Whyalla's potential, including abundant high-quality magnetite reserves, renewable energy generation potential, a well-equipped seaport, a skilled workforce, existing infrastructure, a supportive community, collaborative governments, and now a secured pathway for natural gas offtake and decarbonization collaboration.

Santos and GFG Alliance's collaboration, as outlined in the MOU, signals a significant step toward achieving green steel production at the Whyalla Steelworks. The comprehensive approach, involving natural gas, green hydrogen, and CCS, reflects a commitment to environmentally sustainable practices and the ongoing efforts to balance industrial growth with decarbonization imperatives. The joint pre-feasibility study on CCS opportunities adds another layer of innovation to the collaboration, potentially paving the way for broader applications in emissions reduction strategies. As the project progresses, it will be closely monitored for its impact on the local community, job creation, and the broader green steel industry.

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