InfraBuild Laverton reaches majority renewable electricity with new power agreement

InfraBuild, one of Australia’s largest steel manufacturers and distributors, has confirmed its Laverton facility in Melbourne’s west now runs on majority renewable energy.

Under a new Power Purchase Agreement (PPA) activated on 1 April, the mill now contracts enough electricity from a Victorian wind farm to cover up to 50 per cent of the power required to melt scrap metal into steel.

“This is a genuine milestone, not just for InfraBuild, but for Australian manufacturing,” said Francisco Irazusta, CEO.

“Today’s announcement marks a major step on our journey to 100% renewable energy across our manufacturing sites by 2030. By increasing the amount of renewable energy powering our EAFs, there will be a significant reduction in carbon dioxide emissions per tonne of steel that we produce.”

The Laverton mill produces over 750,000 tonnes of steel per year by recycling scrap metal through its EAF, a process that already generates around 77% lower CO₂ per tonne than traditional coal-reliant blast furnace methods, according to data by World Steel. With renewable energy now powering the majority of the furnace, InfraBuild is taking the Australian construction sector closer to net zero steel.

Matt Kean, Chair of the Australian Climate Change Authority, said the achievement was proof the energy transition was working in the real world.

“Those who have claimed over the years that renewables can’t power Australia’s heavy industry must now confront reality,” Mr Kean said.

“The economics of renewables have moved decisively, and the manufacturers who lock in those advantages first will be the ones who compete globally.”

The Laverton PPA follows InfraBuild’s existing 25% renewable energy agreement at its Sydney Steel Mill and Newcastle Rod Mill in New South Wales. Together, these agreements form part of a deliberate, staged pathway toward 100% renewable energy across all InfraBuild manufacturing sites by 2030.

InfraBuild is also simultaneously expanding Laverton’s production capacity toward one million tonnes per annum by 2028, demonstrating that industrial growth and decarbonisation are not in tension.

“We are backing our manufacturing sector to continue innovating and take advantage of our growing renewable energy sector because we know it gives families the security of good, well-paying jobs,” said Minister for Industry and Advanced Manufacturing Colin Brooks.

One hundred per cent of the renewable electricity contracted under the Laverton PPA comes from wind generation. InfraBuild will also seek to secure supplies of biomethane as a cleaner replacement for natural gas in parts of the mill that cannot readily be switched to electricity.

InfraBuild’s SENSE 600 product, developed in partnership with Monash University, already carries 49% less embodied carbon than the NABERS reinforcing steel average and was recently recognised with a World Steel Innovation of the Year Award. By increasing the renewable energy powering Laverton, InfraBuild is on track to drive SENSE 600’s global warming potential to among the lowest-emissions steel products in the world.

Davina Rooney, CEO of the Green Building Council of Australia, said the construction sector was watching closely.

“Australia’s property industry is entering a new phase of decarbonisation where it’s not just about the emissions from what we use from the grid, but about how the buildings themselves are built,” Ms Rooney said.

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Media contact:

Jessica Puz, Media & External Communications Manager

0416 449 347

media@infrabuild.com