The challenge
New Zealand Steel, a leading steel manufacturer in New Zealand, faced the challenge of needing to ensure long term viability of steel making in New Zealand / reduce its carbon footprint at its Glenbrook steel mill, south of Auckland. With help from the New Zealand Government, New Zealand Steel is building a new $300m Electric Arc Furnace (EAF) at its steelworks at Glenbrook – replacing New Zealand Steel's existing oxygen steelmaking furnace and two of the four coal fuelled kilns. New Zealand Steel needed help with the procurement and construction contracts / aspects to design, supply, and install an EAF, fume treatment plant, and ancillary equipment. This project, known as Project Electron, is New Zealand's largest emissions reduction project. When complete, it will reduce New Zealand Steel's carbon footprint at its Glenbrook steel works by 1,000,000 tonnes per annum – equal to taking 300,000 cars off the road permanently.
Our role
Buddle Findlay played a crucial role in helping New Zealand Steel achieve its ambitious environmental goals. We acted for New Zealand Steel on all procurement, construction, and power purchase arrangements for this project. Our role included drafting and negotiating the primary supply contract with Danieli Co., for the design, supply, and installation of the EAF and related equipment. We also managed the procurement and structuring of the supporting enabling works package construction contracts, and secured power purchase arrangements with Contact Energy that will ensure a reliable supply of renewable energy for the EAF.
Results
Our advice during the procurement and contracting phase of the EAF and related equipment will enable New Zealand Steel to achieve the necessary outcomes for reducing their carbon footprint.
Additionally, securing a reliable supply of renewable energy will provide production flexibility, allowing New Zealand Steel to scale down production during peak demand times, further optimising their operations and reducing costs.
Project Electron is expected to achieve significant environmental benefits and position New Zealand Steel for future growth and sustainability initiatives. The success of this procurement will demonstrate the company's commitment to innovation and sustainable practices, paving the way for future projects aimed at further reducing their environmental impact.
The EAF will help to secure steelmaking in New Zealand for many years to come, working towards meeting the country’s goal of net-zero emissions by 2050.
Our engagement on this project demonstrates our position as a provider of choice for New Zealand's most high-profile, complex and technically challenging construction projects. It also speaks to our familiarity with different forms of construction contract and procurement models.