New Zealand Steel’s Electric Arc Furnace (EAF) has received approval and is set for operation in 2026. The EAF will enable New Zealand Steel to shrink its carbon footprint and help New Zealand, as a nation, be as close to self-sufficient as possible, using renewable energy and recycling scrap steel. This project underscores Pacific Steel’s own commitment to a circular economy model, with all our feed material being supplied by New Zealand Steel.

What is the Electric Arc Furnace?

In a landmark partnership between New Zealand Steel and the Government, the EAF project at Glenbrook, South of Auckland, replaces the current oxygen steelmaking furnace and two coal-fueled kilns, achieving a substantial cut in coal use and carbon emissions. Using an average of 30 megawatts on New Zealand’s largely renewable grid, the EAF will melt down steel scrap, previously exported offshore, and process it into prime steel for new products. This initiative will provide our customers with lower carbon steel products, helping them build a stronger and more sustainable New Zealand.

 

Example of an electric arc furnace in action.

How does it work?

THE ELECTRIC ARC FURNACE PROCESS
THE ELECTRIC ARC FURNACE PROCESS
Compared to the standard process, half the kilns and melter are required and external scrap can now be used.
THE ORIGINAL PROCESS
THE ORIGINAL PROCESS

The Future is Circular

The EAF project exemplifies the benefits of a local circular economy model for both our industry and country. It enables us as a nation to solidify the circularity of steel, with the EAF allowing the recycling and manufacturing of steel within New Zealand in a continuous loop. The introduction of a local EAF also creates the largest industrial decarbonisation effort in our country’s history. Join us on this momentous journey as we forge a path to locally made, low carbon steel.

Benefits of the Electric Arc Furnace

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Secures New Zealand’s future in steelmaking.
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Eliminates a minimum of 800,000 tonnes of carbon emissions annually.
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Results in approximately 50% less coal use, equivalent to a reduction of 400,000 tonnes.
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Equivalent to permanently taking at least 300,000 cars off the road.
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Powered by an average of 30 megawatts from New Zealand’s largely renewable grid.
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Has the ability to reduce electricity demand when the power grid is under stress.
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Reduces New Zealand’s scrap steel exports by approximately 50%.
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Sets the platform for our net-zero goal by 2050.
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Removes 1% of the country’s annual emissions.
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Reduces total scope 1 & 2 emissions by more than 45%.
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Enables steel production in New Zealand with an average embodied carbon per tonne below the world average.

The Electric Arc Furnace brochure

Download our brochure to learn more about our EAF journey.