Danieli and Clough, a subsidiary of Webuild, are participating in a proposed €534 million recycled-steel project in Collie, Western Australia, where developer Generation Steel plans to establish a facility with annual production capacity of approximately 450,000 tonnes.
The plant will use recycled ferrous scrap and renewable electricity to manufacture lower-carbon steel, providing an alternative to conventional blast-furnace production based on iron ore and coking coal. Industrial cooperation agreements involving the Italian companies were signed.
Danieli and Clough to Support Industrial Development
Danieli is expected to supply steelmaking technology, including electric-arc-furnace equipment, while Clough will contribute engineering and infrastructure development.
Electric-arc furnaces use electricity to melt recycled scrap instead of relying primarily on coal-intensive blast-furnace processes. When powered by renewable electricity, the technology can significantly reduce steel production emissions.
The agreements do not confirm financial close for the entire €534 million investment. A final EPC award and complete construction-financing package have not been established.
SACE Expands Italy-Australia Industrial Cooperation
Italy’s export-credit agency SACE has separately signed a cooperation memorandum with Western Australia covering critical-mineral extraction, refining, advanced manufacturing and recycling. The agreement establishes a broader framework for cooperation between Italian industrial companies and Australian resource projects but does not constitute a financing commitment to Generation Steel. No specific SACE loan or guarantee for the Collie development has been confirmed.
The project therefore has two forms of Italian involvement: direct industrial participation through Danieli and Clough, and institutional cooperation through SACE.
Renewable Electricity and Scrap Recycling
Western Australia’s renewable-energy potential and established mining, industrial and port infrastructure provide the setting for the proposed development.
The use of recycled ferrous materials could reduce dependence on virgin raw materials, while renewable electricity would support lower-emission steel production.
The next development milestones include finalising the EPC structure, securing construction financing, placing major equipment orders and beginning site works. If completed, the 450,000-tonne-per-year facility would combine Australian scrap and renewable power with Italian steelmaking technology and engineering capabilities.
