NEW ZEALAND: The government plans benefits to help spend up to $140 million on one of the nation’s largest coal-burning power plants transition away from burning coal, which would be the equivalent of removing 300,000 cars from the road.
The resources will be offered to NZ Steel, which accounts for about 2% of the nation’s total greenhouse gas emissions, is based in Glenbrook, just outside of Auckland, and is owned by the multinational corporation Bluescope.
The funds will be used to partially finance a $300 million electric arc furnace that will replace the current steelmaking furnace and two of the four coal-fueled kilns.
NZ Steel will reduce emissions by more than 45% in addition to the advanced furnace at Glenbrook, which will also allow it to produce all of the lower-carbon steel that it requires for its annual production.
As a result, the Glenbrook mill’s output response will be whittled down by 800,000 metric tonnes, which is the same as taking 300,000 cars off the road or all the vehicles in Christchurch.
Climate Change Minister James Shaw mentioned, “The lifetime abatement cost is forecast at $16.20 per tonne. Current carbon prices are around $55 per tonne. In the long term, this saves the government and the country money.”
It will be used to assist the private company’s transition away from using coal to melt scrap metal and electricity from the grid to develop new steel products out of iron-rich sands.
It has been referred to as a global “template” for governments and companies to collaborate to reduce emissions and will be New Zealand’s largest decarbonization project.
Chris Hipkins, Prime Minister of New Zealand, mentions, “This size of this project demonstrates how serious the Government is about reducing New Zealand’s emissions as fast as possible,” adding, “The plan means New Zealand businesses will have access to locally produced, cleaner steel, and high-value jobs are protected that otherwise might have gone offshore.”
Chris Hipkins also adds that the operation alone would cut emissions by 1% and encourage New Zealand to achieve its net-zero emissions goal of 1.5 C by 2050.
The intervention is predicted to assist in filling a huge disparity in New Zealand’s emission budgets after Hipkins abandoned two climate-related policies this year.
Also Read: New Zealand Hostel Fire: At Least Six Killed in Tragic Incident
