top of page

Biggest emission reduction in history: Steel plant is now working with renewable electricity


Global Goals & Global Society
Biggest emission reduction in history: Steel plant is now working with renewable electricity


New Zealand has embarked on its most significant emissions reduction endeavor to date, as the government unveils a groundbreaking project to transition its major steel plant from coal to renewable electricity. This historic move is anticipated to have a transformative impact, equivalent to removing 300,000 cars from the road, and is aligned with the vision of a global society committed to sustainable development and the United Nations' Sustainable Development Goals (SDGs).


The government's investment of $140 million will facilitate a substantial reduction in coal consumption at the Glenbrook steel plant, slashing it by half. The funds will be utilized to introduce an electric-powered furnace that will replace the coal-dependent operations currently used to recycle scrap steel. The plant itself will contribute $160 million towards the project's overall cost.





Presently, the steel industry accounts for 2% of New Zealand's total emissions, primarily due to the intensive combustion of coal required to melt iron-rich sands and produce steel. However, the forthcoming initiative aims to install a $300 million electric-powered arc furnace, which will leverage renewable energy sourced from New Zealand's national grid. The national grid predominantly relies on wind, hydro, and geothermal power, ensuring that the steel plant's operations are fueled by clean energy sources.


Prime Minister Chris Hipkins hailed the project as a groundbreaking milestone, asserting that it surpasses any previous endeavors of a similar nature.


Hipkins stated, "This project demonstrates the government's unwavering commitment to rapidly reducing New Zealand's emissions. Alone, it will eliminate 1% of our nation's annual emissions."

According to government estimates, the initiative is projected to reduce New Zealand's emissions by 800,000 tonnes per year, which is equivalent to removing the entire automobile fleet of Christchurch, one of the country's largest cities, from the roads. Minister of Energy and Resources, Megan Woods, emphasized the significance of this achievement, noting that the project's emissions reduction surpasses the cumulative impact of all other government-funded initiatives implemented thus far. The electric-powered furnace is scheduled to be operational by 2026-2027.


Climate change expert Professor James Renwick from Victoria University hailed the project as a significant step towards achieving the country's emissions targets. Renwick remarked that it would be the most substantial single reduction in national emissions once implemented, underscoring its importance. However, Renwick also stressed the need for continuous efforts, stating that while a 1% reduction is commendable, the ultimate goal should be a 100% reduction.


Climate Minister James Shaw lauded the project, highlighting its potential to bolster New Zealand's progress towards achieving its climate target of net-zero carbon emissions by 2050. The initiative marks a notable departure from relying solely on offsetting carbon emissions through tree planting, as it focuses on tangible emissions reductions.


The plan's significance lies not only in its immediate environmental impact but also in its contribution to New Zealand's long-term emissions reduction goals. The country's heavy reliance on tree planting to offset emissions was deemed unsustainable by the Climate Commission in April. Experts warned that forests could be susceptible to destruction through fire or extreme weather events and do not indefinitely sequester carbon.


Although New Zealand's overall contribution to global emissions is relatively small, its per capita emissions remain high, surpassing the per capita rate of the UK. The nation has been confronted with criticism for its poor performance in curbing emissions in the past.


Professor Renwick emphasized the need to focus on reducing gross emissions rather than solely relying on net emissions reduction through offsetting measures. He stated that planting trees alone cannot solve the climate crisis, urging greater emphasis on comprehensive emissions reduction strategies.


Minister Shaw stated that the project is estimated to contribute 5.3% towards New Zealand's second emissions budget covering 2026-2030, and 3.4% towards the third emissions budget spanning 2031-2035.


This groundbreaking emissions reduction initiative not only places New Zealand on a progressive path towards carbon neutrality but also aligns with the global vision of a sustainable society outlined in the SDGs. By prioritizing sustainability and fostering collaboration between the government, the private sector, and civil society, New Zealand paves the way for other nations to follow suit in their pursuit of a greener future.




bottom of page