Posted on 27 Oct 2026
Aussie steel manufacturer Generation Steel has signed a binding deal with BHP Group Plc (ASX:BHP) that will support the renewable energy requirements of a proposed steel mill in Collie, Western Australia.
Under the power purchase agreement (PPA), renewable electricity for the Collie Steel Mill will be supplied from solar photovoltaic (PV) and wind farms, Generation Steel said on Monday. The contract is aligned with the steel producer’s ambition to create one of the lowest-emissions steelmaking hubs globally.
According to local media reports, the green power will come from the Flat Rocks Wind and Merredin Solar parks under off-take deals that BHP secured for the expansion of its nickel business – a plan that was subsequently stalled due to the oversupply in the global nickel market.
Commenting on the PPA, Generation Steel’s executive director and co-founder Rajan Aggarwal said: "It confirms our position at the forefront of low-carbon steel production and demonstrates that world-class, high-quality steel and genuine decarbonisation are not just compatible — they're the future of the industry."
The Collie Steel Mill will deploy electric arc furnace technology and will have the capacity to make 460,000 tonnes of construction steel products.
Source:Renewables Now
