BlueScope Steel forges ahead with $1.15 billion blast furnace reline

BlueScope Steel forges ahead with $1.15 billion blast furnace reline

By abc.net.au
Sunday 26/01/2025
Workers reline BlueScope Steel's number six blast furnace. (ABC Illawarra: Tim Fernandez)

On any given day there are 250 people inside the Port Kembla steelworks working on the biggest project in the Australian steel industry — relining BlueScope Steel's number six blast furnace.

The massive undertaking is a three-year project with a total cost of $1.15 billion, the biggest spend in the company's history.

As the current number five blast furnace reaches the end of its life cycle, the steelmaker is working to bring its only other furnace back online.

But it comes at an awkward time as, globally, steelmakers pursue low-emissions steelmaking alternatives.

Green steelmaking, BlueScope claims, is simply not a viable option for maintaining the steelworks' output of 3 million tonnes of steel per year.

However, the steelmaker said its unprecedented investment demonstrated the company's commitment to the future of Australian steel manufacturing.

"This reline does secure the future of the Port Kembla Steelworks for the next 20 years," Blast Furnace Reline Project director Justin Reed said.

A century of blast furnace steelmaking

The industrial heart of the NSW Illawarra region has a rich history of blast furnace steelmaking, stretching back to the lighting of the first furnace in 1928.

This fundamental process has underpinned steelmaking in the region for almost 100 years.

A blast furnace combines iron ore and metallurgical coal at high temperatures to produce molten iron — the raw feedstock for steel.

Over time, the brick lining inside the furnace and the water-cooling system degrades and needs to be replaced.

"There are a lot of parts that make this project as complex as it is," Mr Reed said.

The steelmaker's approach to this project has been a little different to previous relines.

The company has contracted the largest crane operating in the southern hemisphere to help.

"This crane is amazing. It is definitely changing the way we go about this project," Mr Reed said.

"It has a huge reach, so the driver's cabin is about 86 metres above the ground. The boom itself is 95 metres of reach.

"It enables us to move a lot of parts around the plant with that one single crane."

There are only two blast furnaces operating in Australia, at Port Kembla and the Whyalla Steelworks in South Australia.

While BlueScope has been able to draw upon expertise within its ranks, it has also relied on support from other steelmaking nations.

"There are some technical experts that we do need some help from overseas, some of the particular items in a blast furnace are designed in Europe," Mr Reed said.

Turning heat into energy While the basics of the steelmaking process remains largely unchanged at Port Kembla, there have still been significant technological leaps.

The blast furnace will be fitted out with the latest in energy-saving technology.

The federal government's decision to provide $136 million towards the reline received some backlash, due to the plant's carbon footprint.

However, the refurbished furnace will include a top gas recovery system, turning exhausted gas into energy.

For the first time, the furnace will also include a waste gas heat recovery system, reusing heat to generated in the steelmaking process.

The energy captured is enough to power about 20,000 homes.

"We will offset a lot of the fuel that we would otherwise need to be added into our processes," BlueScope Steel waste gas recovery engineer Rosa Tran said.

Bridge to green steel BlueScope is one of Australia's largest carbon emitters.

The company has faced criticism that reviving the blast furnace will commit the steelmaker to another two decades of burning coal.

But BlueScope Steel sees the project as a bridge to low-emissions steelmaking.

The company's chief executive, Mark Vassella, has previously said the reline would enable production to continue at Port Kembla while the company investigated pathways towards green steel.

In December, the company announced it would be pushing ahead with building a pilot green iron plant south of Perth.

The plant will use smelting technology rather than a blast furnace.

But BlueScope Steel is confident there remains a pathway for low emissions steelmaking at Port Kembla, claiming the blast furnace can be retrofitted to run off green fuel sources such as hydrogen.

"The two projects absolutely will work in parallel," Mr Reed said.

"This project needs to be completed to ensure the Port Kembla steelworks continues to operate through the time that our company and other companies investigate the future iron-making sources."

BlueScope Steel said the reline is on track to be completed by mid-2026.

FEATURE NEWS
Kishore Kumar avoids jail time as 12-month sentence is suspended for 3 years in Agni Deo Singh case
57-year-old former school teacher, Kishore Kumar will not be spending time behind bars as his 12 months sentence has been suspended for three years in...
29 days ago
LATEST NEWS
Tanoa Hotel Group and NZ students plant 600 mangroves at Taiperia, Lautoka
To combat the ongoing effects of climate change and the company’s commitment to environmental sustainability, the Tanoa Hotel Group and 16 ...
26 days ago

Ovalau family to celebrate Easter reminiscing the hard work and dedication of their late son
The Boleilovoni family will have a celebration this Easter at their home in Lovoni Village, Ovalau, celebrating their late son Joseph Rymell ...
26 days ago

Expect a rainy Easter weekend as a flash flood alert and heavy rain warning in force for Fiji
People need to be prepared for a wet Easter weekend as a flash flood alert is still in force for all low-lying and flash flood-prone areas of Viti ...
26 days ago

Flash flood alert for Viti Levu and Vanua Levu
Please be prepared as a flash flood alert is now in force for all low lying and flash flood prone areas of Viti Levu and Vanua Levu. A heavy rain ...
26 days ago

U.S Ambassador calls out China on trying to undermine its bilateral relationship with Fiji
It's puzzling that any country purporting to be a friend to Fiji would try to publicly undermine Fiji’s bilateral relationship with one of its ...
27 days ago



fijivillage Straight Talk with Vijay Narayan
Latest Videos

Stay tuned for the latest news on our radio stations

CFL radio frequencies
IN DEPTH
Top Interventional Cardiologist Dr Kapadia on fijivillage Straight Talk With Vijay Narayan
The show will focus on health services in the country. The former Marist Brothers Primary and High School student who has been practising medicine ...
37 days ago

Supervisor of Elections on fijivillage Straight Talk With Vijay Narayan
The interview focus on preparations for the 2026 general elections, voter related issues, electoral laws, the 2022 glitch and the municipal council ...
37 days ago

Swire Shipping Fijian Drua Coach, Glen Jackson on fijivillage Straight Talk With Vijay Narayan
Swire Shipping Fijian Drua Coach, Glen Jackson appeared on fijivillage Straight Talk With Vijay Narayan from the Drua base in Nadi. Coming off ...
41 days ago

TOP