Generation Steel’s $850m Collie green steel mill expands plans
The backer behind the Collie green steel plant has struck another supply deal as it expands the offering with a $40 million cut-and-twist plant.
Generation Steel, formerly Green Steel of WA, has joined hands with Victorian manufacturer Stride Reinforcement to supply ready-made reinforced steel from the proposed facility.
It has also been announced that there are plans to add a $40 million cutting and bending facility to the South West facility to deliver 100,000 tonnes of pre-reinforced steel per year to construction customers.
The expansion brings the total value of the low-carbon steelmaking project to $850 million, with Generation Steel aiming to make a final investment decision in late 2026.
The facility, which is expected to be operational in 2028, is expected to produce 450,000 tons of steel annually, as well as a cutting and bending capacity of 100,000 tons/year.
“Green steel” will be produced using recycled scrap steel and electric arc furnace technology powered by renewable energy; it’s a more energy-efficient process that proponents say produces significantly lower emissions than traditional blast furnace methods.
The Victorian supply arrangement builds on Generation Steel’s memorandum of understanding with Lendlease and Laing O’Rourke for construction material.
Last month, the provincial government donated nearly $10 million to complete pre-development activities for the project, on top of the $4.5 million already committed.
The funds were allocated from the $230 million Collie Industrial Transition Fund, established to attract large-scale industrial projects and create long-term jobs in Collie as the town prepares to transition away from the coal-fired energy industry.
Generation Steel co-founder Don Johnston said the Stride Reinforcement partnership was the first of more deals to come on the east coast.
“The majority of rebar currently used in Australia is imported and even Australian-made rebar is foreign owned and suffers from a lack of any competition,” he said.
“Cash and capital that could have been reinvested have been withdrawn from Australian industry. This leaves Australia’s major construction projects exposed to risk, price fluctuations and sudden supply disruptions.”
“By partnering with strong Australian independents like Stride, we can reliably supply truly local, low-emission steel to construction projects across the country.”
Generation Steel co-founder Raj Aggarwal added that the project comes at a crucial time for Australian manufacturing.
“Strengthening steel in Australia is at the center of three macro forces: pressure on supply chains in the face of geopolitical shifts, lack of investment in new factories and the emergence of technology that reduces energy use and emissions while increasing cost and capacity,” he said.
“Facing these pressures requires a profound shift in how we think about manufacturing investment and the country’s resilience.”
“Just as we need to invest in Australian fuel production, we also need locally owned and produced steel and this project will support supply and local jobs for generations.”
The green steelworks is expected to create 500 jobs during the expected 24-month construction phase and support 250 ongoing local roles in Collie.
The proposal comes amid a transition period for the regional town built on coal, as the province prepares to move away from coal-fired power by 2030.
It will also be Australia’s first new steelworks in more than 30 years and a first in Western Australia, with the Whyalla Steelworks operation in SA struggling.
