New Zealand’s steel industry is set to undergo a major transformation with the launch of New Zealand Steel’s new electric arc furnace (EAF) in late 2025.
“This project is more than an upgrade,” says Israel MacDonald, sustainability manager at Pacific Steel. “It’s a decisive move towards sustainable steel production, ensuring Pacific Steel – and our steel industry as a whole – remain resilient and environmentally responsible for future generations.”
New Zealand Steel is replacing its current oxygen steelmaking furnace and two coal-fuelled kilns with a state-of-the-art EAF in a transition that marks a crucial step in New Zealand’s largest industrial decarbonisation effort.
“Using the largely renewable grid, the EAF will melt domestic scrap steel, which was previously exported, into prime steel for new products. This shift will reduce coal reliance by at least 50% and cut emissions by 45% from day one, contributing to a 1% reduction in New Zealand’s total annual emissions.”
Locally made, low emissions steel reinforcing products
The EAF will be integrated into the existing steelmaking process and will allow a range of scrap levels to be used, significantly reducing emissions. Two primary steelmaking blends will be used.
The proposed standard blend consists of 50-60% scrap, with the remainder made up of iron, and has an estimated global warming potential (GWP) of ~1.7 kgCO2-eq (this is an indicative GWP based on early internal modelling. Full LCA and verification not complete).
This blend cuts emissions by over 50% for reinforcing steel, meeting the criteria for a 6-star Green Star building in terms of upfront carbon.
“Reinforcing is only one component of an entire building, and when calculating upfront carbon emissions all components must be considered. The emissions reductions of our reinforcing can make a significant contribution, but not necessarily achieve it alone,” says MacDonald.
The 100% scrap blend is a special mix that supports strong sustainability outcomes, with an estimated GWP of ~0.4-0.5 kgCO2-eq. While lower emissions steel reinforcing products exist internationally, transport emissions become a significant contributor to the overall landed emissions and are accounted for in reputable whole-of-life LCA calculations. MacDonald says that indicative GWP is based on early modelling, with full LCA and verification not complete.
The future is circular
Pacific Steel is committed to leading a local-made, low-carbon future. The EAF project is the perfect example of the circular economy model, where materials are continuously reused and recycled, maximising their lifecycle and value. Recycling domestic scrap steel means a reduced carbon footprint and reliance on imported materials, as well as an increase in New Zealand’s self-sufficiency.
Sponsored content: For more information visit New Zealand’s steel industry is set to undergo a major transformation with the launch of New Zealand Steel’s new electric arc furnace (EAF) in late 2025.
“This project is more than an upgrade,” says Israel MacDonald, sustainability manager at Pacific Steel. “It’s a decisive move towards sustainable steel production, ensuring Pacific Steel – and our steel industry as a whole – remain resilient and environmentally responsible for future generations.”
New Zealand Steel is replacing its current oxygen steelmaking furnace and two coal-fuelled kilns with a state-of-the-art EAF in a transition that marks a crucial step in New Zealand’s largest industrial decarbonisation effort.
“Using the largely renewable grid, the EAF will melt domestic scrap steel, which was previously exported, into prime steel for new products. This shift will reduce coal reliance by at least 50% and cut emissions by 45% from day one, contributing to a 1% reduction in New Zealand’s total annual emissions.”
Locally made, low emissions steel reinforcing products
The EAF will be integrated into the existing steelmaking process and will allow a range of scrap levels to be used, significantly reducing emissions. Two primary steelmaking blends will be used.
The proposed standard blend consists of 50-60% scrap, with the remainder made up of iron, and has an estimated global warming potential (GWP) of ~1.7 kgCO2-eq (this is an indicative GWP based on early internal modelling. Full LCA and verification not complete).
This blend cuts emissions by over 50% for reinforcing steel, meeting the criteria for a 6-star Green Star building in terms of upfront carbon.
“Reinforcing is only one component of an entire building, and when calculating upfront carbon emissions all components must be considered. The emissions reductions of our reinforcing can make a significant contribution, but not necessarily achieve it alone,” says MacDonald.
The 100% scrap blend is a special mix that supports strong sustainability outcomes, with an estimated GWP of ~0.4-0.5 kgCO2-eq. While lower emissions steel reinforcing products exist internationally, transport emissions become a significant contributor to the overall landed emissions and are accounted for in reputable whole-of-life LCA calculations. MacDonald says that indicative GWP is based on early modelling, with full LCA and verification not complete.
The future is circular
Pacific Steel is committed to leading a local-made, low-carbon future. The EAF project is the perfect example of the circular economy model, where materials are continuously reused and recycled, maximising their lifecycle and value. Recycling domestic scrap steel means a reduced carbon footprint and reliance on imported materials, as well as an increase in New Zealand’s self-sufficiency.
Sponsored content:
For more information visit www.pacificsteel.co.nz/sustainability/eaf/.