GFG Alliance signs landmark deals in Whyalla

Agreement on hydrogen and memorandum of understanding with Santos for gas

26 February 2024

GFG Alliance on Sunday signed a landmark agreement with the South Australian Government to explore opportunities for the supply of hydrogen from its 250MW electrolyser in Whyalla to support the transformation to green iron and steel.

GFG has also entered into a memorandum of understanding (MOU) with global energy company Santos for potential long term natural gas supply to its Whyalla operations and cooperation for decarbonisation.

GFG looks forward to continuing to work with the South Australian Government on its vision for the Upper Spencer Gulf and Eyre Peninsula, and to opportunities to work with the Australian Government on its ambition for Australia to become a Renewable Energy Superpower.
Liberty Primary Steel and Mining Australia (LPMA) CEO Sandip Biswas

GFG Alliance Executive Chairman Sanjeev Gupta said that being a key offtaker for the supply of green hydrogen from the world’s largest electrolyser being built in Whyalla was a real privilege for GFG.

“This step is vital in our plans to produce premium green iron and steel in Whyalla, and a huge boost to Australia’s determination to lead the world in decarbonisation, Mr Gupta said.

“I celebrate our collaboration with the South Australian Government which serves to underscore Premier Malinauskas’s commitment to environmental sustainability and economic prosperity for the Upper Spencer Gulf.

“The Premier’s bold approach to leading the charge on green hydrogen is an example to Australia and the rest of the world in kick starting this vital shift in energy transition which will benefit generations to come.

“Today’s agreement gives us and our stakeholders confidence to ramp up our efforts and commitment to the production of our 4 billion tonnes of high-quality magnetite, the establishment of a state-of-the-art green iron and green steel plant which will ultimately be powered by renewable energy and green hydrogen.

“These world changing industries will truly put Whyalla on the map, bringing high quality jobs and prosperity to this resilient region, establishing us as a global leader in the production of green iron and steel.

“I am also pleased to be working with a strong partner in Santos on natural gas supply for our operations, necessary for the transition to hydrogen. Furthermore, we are happy to support and applaud the pursuit of Santos’s Carbon Capture and Storage ambitions which could play a significant role in reducing residual emissions from our steelworks.”

LIBERTY Primary Steel and Mining Australia (LPMA) CEO Sandip Biswas said that Whyalla had all the elements required to lead the green steel industry in one location – vast reserves of high-quality magnetite, abundant potential for the generation of renewable energy, a cape-sized capable seaport, a skilled workforce, extensive existing infrastructure, a supportive community, collaborative governments, and now secured a pathway to offtake natural gas and decarbonisation collaboration.

“Today’s announcements are in addition to a recent grant of $63.2 million from the Albanese Government’s Powering the Regions Fund to support the purchase and installation of an electric arc furnace and a $50 million grant committed by the South Australian Government pending approval for use towards the EAF,” Mr Biswas said.

“This support will ensure the transformation of Whyalla steelworks continues to progress.

“GFG looks forward to continuing to work with the South Australian Government on its vision for the Upper Spencer Gulf and Eyre Peninsula, and to opportunities to work with the Australian Government on its ambition for Australia to become a Renewable Energy Superpower”.

These world changing industries will truly put Whyalla on the map, bringing high quality jobs and prosperity to this resilient region, establishing us as a global leader in the production of green iron and steel.
GFG Alliance Executive Chairman Sanjeev Gupta

Main picture: LPMA CEO Sandip Biswas shakes hands with SANTOS CEO Kevin Gallagher after the signings with Premier Peter Malinauskas. Top right: Premier Peter Malinauskas with LPMA CEO Sandip Biswas after the signing in the steelworks. Above right: LPMA CEO Sandip Biswas addresses a press conference at the steelwork with, back from left, Minister for Energy and Mining Tom Koutsantonis; Managing Director and Chief Executive Officer of Santos Kevin Gallagher and South Australia Premier Peter Malinauskas.