The Port Kembla steelworks will be at the forefront of BlueScope's efforts to lower greenhouse gas emissions.
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At Monday's announcement of a $1.19 billion profit, BlueScope CEO Mark Vassella unveiled a commitment for the steelmaker to reach net zero emissions by 2050.
He said the company was planning to allocate up to $150 million over the next five years on near-term action on climate change.
"We are absolutely committed to further reductions in greenhouse gas emissions intensity," Mr Vassella said.
"This immediate capital allocation will fund our technology plan that seeks to optimise current operating assets and prepare for emerging and breakthrough technologies.
"Immediately, we'll focus on production efficiencies such as increased usage of scrap, indigenous gases and renewable energy."
Earlier this year, BlueScope appointed Gretta Stephens to the newly created position of Chief Executive Climate Change.
The bulk of her team is based in the Illawarra, where a lot of the focus on reducing emissions will take place.
Mr Vassella said trials using alternative energy sources at Port Kembla were already under way.
"Our team at Port Kembla has in effect injected hydrogen into a blast furnace because the coke ovens gas that we've used to inject into the blast furnace is actually hydrogen-rich," he said.
The CEO was also working with the state government to develop a hydrogen electrolyser to trial hydrogen injection in the blast furnace.
With a final approval for the blast furnace reline due some time in the first half of next year, Mr Vassella said the latest technologies available to reduce greenhouse gas emissions intensity would be evaluated for a possible inclusion in the project, which would begin after 2025.
Mr Vassella said the net zero target was highly dependent on several factors, including the commerciality of emerging and breakthrough technologies and the availability of affordable and reliable renewable energy and hydrogen.
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