Generation Steel has announced a binding power purchase agreement (PPA) with BHP to cover the renewable energy requirements of its proposed steel mill in Collie, Western Australia. According to the company, the electricity would be supplied from solar and wind generation sources that are already operating. The solar segment remains active elsewhere: Masdar bought a solar project of over 550 MW from Lightsource bp, ENNA Solar acquired the Romanian Medgidia project, with 166 MWp of solar and 612 MWh, and Rwanda is seeking investors for a 200 MW floating solar plant.

An agreement presented as a project milestone

Generation Steel describes the agreement as an important milestone in the development of the Collie steel mill, which remains a proposed project. The company says it aims to establish one of the world's lowest-emissions steelmaking operations and to produce lower-carbon steel in Western Australia. These goals reflect the company's own communication and are not backed by data in the release.

The release does not specify the contracted electricity volume, the length of the contract, its price or the start date of deliveries. It also gives no production capacity for the mill and no construction timetable. Generation Steel says further details on the project will be announced shortly.

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Statements from both parties

Rajan Aggarwal, Executive Director and Co-Founder of Generation Steel, said that being powered entirely by renewable energy from day one was a defining moment for the company. He said the agreement confirms the company's position at the forefront of low-carbon steel production. He argued that high-quality steel and decarbonisation are compatible.

Rob Whitham, BHP WA Nickel Manager Commercial Energy and Utilities, said the agreement shows how the group can unlock additional value from the renewable energy arrangements established to support its business. He highlighted the work of the teams in converting surplus renewable energy into opportunities that support the wider community and economy. At this stage, only statements from the two companies document the agreement, and its financial and technical terms have not been made public.