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Low-Carbon Future: NZ Steel’s Big Leap

Low-Carbon Future: NZ Steel’s Big Leap

Posted on August 12, 2025


At Innate Furniture, sustainability and local resilience are at the heart of what we do. That is why we are inspired by New Zealand Steel’s bold move to decarbonise steel production and what it could mean for building a more sustainable Aotearoa.

A Turning Point for Kiwi Steel
New Zealand Steel’s Glenbrook mill is preparing to install a $300 million Electric Arc Furnace, funded jointly by the Government and NZ Steel. Commissioning is expected to begin by the end of 2025, with full operation in 2026, and there is potential for the project to be completed even sooner. This will be the largest industrial decarbonisation project in the country’s history.

Why It Matters
• Expected to reduce operational emissions by 45 to 55 percent, cutting around 800,000 tonnes of carbon dioxide each year. That is the same as removing 300,000 cars from our roads.
• This represents about one percent of New Zealand’s total annual emissions.
• The Electric Arc Furnace will replace the current oxygen steelmaking unit along with two of the four coal-fuelled kilns and one melter.
• It will shift the process away from coal-intensive iron sand production to electricity-powered recycling of domestic scrap steel, halving coal use and significantly lowering the embodied carbon in every tonne of steel produced.
• More of New Zealand’s scrap steel will be recycled here rather than exported, helping to build a stronger circular steel economy.

What This Means for NZ Made Steel Sheets
Lower carbon footprint: Steel from the Electric Arc Furnace will have significantly reduced embodied emissions.
Stronger circular economy: More local recycling means less waste, fewer transport emissions and a more resilient supply chain.
Market advantage: Steel with verified low carbon credentials adds value to every product made with it.
National leadership: Positions New Zealand as a leader in sustainable steelmaking.

Our Commitment to NZ Steel in Furniture Design
At Innate Furniture, we are committed to designing and manufacturing furniture using New Zealand-made steel. Choosing NZ steel is both a design choice and a sustainability decision. It comes with certain design restrictions, as locally produced steel sheets limit the use of some imported profiles like round or box tubes. Instead, we create unique designs that celebrate the properties of flat steel sheets and work within those parameters. This challenge inspires creativity and results in truly original pieces that you will not find anywhere else.

All of our NZ steel sheets are laser-cut to precision in Christchurch. This ensures accuracy, efficiency and quality while keeping manufacturing local. By partnering with Christchurch-based steel fabricators, we can scale production as demand grows while continuing to support the New Zealand economy and create jobs.

Before and After
Before: High emissions, coal-intensive, most scrap exported.
After: 800,000 tonnes of carbon cut annually, coal use halved, more scrap recycled locally, lower footprint per tonne.

Why This Resonates with Us
Like NZ Steel, we believe in sustainable manufacturing, local resources and innovation that benefits both people and the planet. The Glenbrook Electric Arc Furnace is more than a technical upgrade. It is a powerful commitment to a low carbon future—and it strengthens our own mission to design furniture that is beautiful, functional, and made with materials that support New Zealand’s environment and economy.

Links

New Zealand Steel Electric Arc Furnace Announcement

Beehive Announcement: NZ's Biggest Ever Emissions Reductions Project

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