Climate Energy Finance - Arc of Ambition: Decarbonising and Safeguarding Australia’s Steel Industry

A new report from Climate Energy Finance, Arc of Ambition, has highlighted the significant opportunity for Australia to establish a domestic low-emissions steel industry and identifies Electric Arc Furnace (EAF) steelmaking as a key pathway for building Australia's future steelmaking capability.

The report calls for greater strategic focus on developing an Australian low-emissions steel industry, including coordinated investment, infrastructure, finance, procurement, skills and government policy. It highlights the opportunity for EAF facilities powered by renewable electricity to significantly reduce emissions from steel production while creating new regional employment, supporting renewable energy development and strengthening Australia's sovereign manufacturing capability.

Importantly, the report identifies Collie, Western Australia, alongside Whyalla and greater Brisbane, as locations where EAF steelmaking could progress in the near term. This reinforces the strategic importance of Generation Steel's Collie Steel Mill and the role the project can play in Australia's transition towards a modern, lower-emissions steel industry.

Generation Steel is developing Australia's first new steel mill in more than 30 years, a 450,000 TPA EAF steel mill in Collie. The project is designed to utilise modern, energy-efficient technology and renewable electricity to produce commercially competitive, low-emissions steel while supporting the long-term industrial transition of the Collie region.

The report's findings reinforce Generation Steel's view that establishing new domestic steelmaking capability is about more than decarbonisation. It represents an opportunity to strengthen Australian supply chains, create skilled regional employment, attract private investment and establish the industrial foundations required for Australia's next generation of manufacturing.

As Generation Steel continues to progress the Collie Steel Mill towards Final Investment Decision, the report provides further recognition of the important role that projects such as Generation Steel can play in Australia's future industrial and manufacturing landscape.

Read the full Arc of Ambition report from Climate Energy Finance: https://climateenergyfinance.org/wp-content/uploads/2026/07/CEF_Arc-of-Ambition_-Decarbonising-and-Safeguarding-Australian-Steel_MR_FINAL.pdf