Generation Steel signs renewable power agreement with BHP

Australian steel producer Generation Steel has signed a binding power purchase agreement (PPA) with BHP to supply renewable electricity to its proposed steel mill in Collie, Western Australia.

Under the agreement, the mill will receive renewable electricity from operating solar and wind generation sources, supporting Generation Steel's plan to establish a low-emissions steelmaking operation powered entirely by renewable energy from its launch.

The agreement marks a milestone in the development of the proposed Collie Steel Mill, which will use electric arc furnace (EAF) technology to produce lower-carbon steel products.

BHP WA Nickel Manager Commercial Energy and Utilities Rob Whitham said the agreement would enable BHP to create additional value from renewable energy arrangements established for its own operations by directing surplus power towards the proposed steel mill.

Generation Steel is an Australian private company developing a low-carbon steel mill in Collie, Western Australia. Formerly known as Green Steel of WA, the company plans to produce around 460,000 tons of construction steel products annually using electric arc furnace (EAF) technology and 100pct renewable electricity. The proposed facility will use recycled Australian steel scrap and is expected to begin commercial production in 2028, subject to project development and investment decisions.