UK-based GFG Alliance has announced that it has inked a deal with the South Australian government to explore the option of supplying hydrogen from a 250-megawatt electrolyzer under construction in Whyalla to support its transformation to green iron and steel production.
The South Australian government will build a green hydrogen hub in Whyalla, entailing an investment of A$593 million ($388.28 million). This hub, which will feature an electrolyzer and hydrogen storage facilities, is scheduled to start commercial operations in 2026.
In the meantime, the company has partnered with the global energy company Santos for a potential long-term supply of natural gas to its Whyalla plant. The deal also includes exploring carbon capture and storage opportunities.
“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 decarbonization. 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,” Sanjeev Gupta, executive chairman of GFG Alliance, said.