Greensteel Australia to build world’s first hydrogen-powered rolling mill in partnership with Danieli
Greensteel Australia has partnered with steel manufacturing technology specialist Danieli to build a first-of-its-kind, zero-emissions rolling mill in New South Wales, powered entirely by green hydrogen.
Greensteel Australia has signed an agreement with Italian company Danieli to construct a 600,000-tonne-per-year steel rolling mill powered by green hydrogen. Expected to open by late 2026, the facility aims to reduce the steel industry’s carbon footprint, producing rebar and spooled coils for Australia’s construction sector with minimal environmental impact.
Iron and steel production, responsible for approximately 8% of global CO2 emissions, is considered one of the most carbon-intensive sectors. According to the International Energy Agency, reducing emissions from steelmaking by 50% by 2050 is necessary for meeting global climate goals.
The proposed facility will use a 100% green hydrogen reheating furnace, designed to cut out nitrogen oxide emissions and remove the need for fossil fuels entirely, making it one of the cleanest steel production methods globally. The project provides an opportunity to demonstrate solar thermal and hydrogen fuel applications in heavy manufacturing, advancing the potential for renewable technologies in future Australian industries.
It will also feature Danieli’s sixth-generation billet welding technology, which allows continuous material flow through the rolling stands and a Fast Finishing Block that can roll smaller sizes at speeds of up to 40 meters per second. This setup will ensure production efficiency while minimising downtime, essential for achieving the high-quality outputs needed in construction.
The rolling mill will produce rebar in sizes from 10 to 50 mm and spooled coils from 8 to 32 mm, addressing local construction market needs while demonstrating the potential of green hydrogen in heavy industry. The plant will be outfitted with mechanical and electrical automation, cranes, water treatment facilities, and compressed air systems, all geared toward maximising safety and production efficiency.
As well as a proposed NSW facility, Greensteel Australia is also in discussion with Danieli to acquire a further two hydrogen mills in Queensland and Western Australia.
Mr Mena Ibrahim, President of Greensteel Australia, said of the project: “By using 100% green hydrogen, we’re not just building a new rolling mill; we’re setting a new example for clean steel production. This project shows our commitment to making steel in a way that’s better for the environment and for future generations.”
