Infra Build Green Steel Expansion, 25% Capacity Increase, $150 M Bondholder Deal, and Biomet Pilot (2021 to 2026)

Green Steel Adoption, Infra Build EAF Projects Signal Decarbonization Pathway

The global steel industry is signaling a decisive shift toward Electric Arc Furnace (EAF) technology as the most viable near-term decarbonization strategy, a move validated by project delays plaguing more ambitious hydrogen-based alternatives. While long-term green hydrogen initiatives remain critical for full decarbonization, the commercial momentum and capital allocation from 2025 to 2026 confirm that the scrap-based EAF model provides an immediate, scalable, and financially sound pathway for achieving significant emissions reductions in hard-to-abate sectors.

• Between 2021 and 2024, EAF technology was a growing segment, but the 2025-2026 period has been defined by major industrial commitments. Infra Build’s decisions to expand its Laverton and Queensland facilities validate the commercial readiness of the EAF model for significant, large-scale production.
• The strategic pivot toward EAFs has been amplified by the widespread delays, pauses, and cancellations of capital-intensive green hydrogen Direct Reduced Iron (H 2-DRI) projects observed globally in 2025 and 2026. Arcelor Mittal‘s delayed DRI facility in Spain is a prominent example of the execution risks associated with technologically nascent pathways.
• The global investment pipeline reflects this shift. As of April 2026, new EAF steelmaking capacity under construction reached 109 Mtpa, representing 164% of the new coal-dependent Blast Furnace-Basic Oxygen Furnace (BF-BOF) capacity being built, a clear directional change in capital.
• This trend shows a broader industrial strategy of electrifying processes to decouple steel production from direct fossil fuel combustion at the plant level. This effectively transfers the decarbonization challenge from the steel mill to the electricity grid, a more manageable and scalable problem.

$150 M Secured, Infra Build EAF Expansion Investment

Investor confidence is consolidating around the pragmatic and commercially proven scrap-EAF model, as demonstrated by successful financing for established producers, while capital for more speculative, long-term green steel projects faces greater scrutiny. This divergence in capital allocation underscores a market preference for tangible, near-term returns and de-risked technology over higher-cost, long-lead-time ventures.

• In April 2025, Infra Build secured an additional US$150 million in funding from its bondholders. This capital injection demonstrates strong investor confidence in its scrap-EAF expansion strategy and its ability to capture growing demand for lower-carbon steel.
• This successful financing contrasts with the economic headwinds facing more ambitious green steel ventures. Industry reports from 2026 cite a lack of customer willingness to pay high green premiums and insufficient government support as primary reasons for the stalling of several large-scale hydrogen-based steel projects.
• While some advanced projects like Swedish Steel’s (SSAB) HYBRIT secured significant financing of approximately $3 billion in July 2025, it represents a high-risk, high-cost “premium green steel” segment. Infra Build’s model is focused on leveraging the circular economy for a more scalable and immediately deployable approach.

Table: Green Steel Project Financing and Status

Australia vs. Europe, Infra Build Green Steel Strategy

Australia is rapidly solidifying its position as a key global region for pragmatic, EAF-based green steel production, leveraging its abundant scrap resources and supportive state-level policies to accelerate near-term decarbonization. This contrasts with Europe, where more ambitious and technologically complex hydrogen-focused projects have encountered significant implementation headwinds, highlighting a divergence in regional strategies and timelines.

• During the 2021–2024 period, the global green steel narrative was heavily influenced by European-led initiatives, particularly the HYBRIT project in Sweden, which focused on the long-term goal of hydrogen-based primary steelmaking.
• Starting in 2025, Australia demonstrated significant commercial momentum. Infra Build’s capacity expansions in Melbourne and Queensland, announced in October 2025 and May 2026 respectively, signaled a powerful market-led push.
• This momentum is reinforced by supportive domestic policy. The Western Australian government’s decision in November 2025 to prioritize local green steel for major infrastructure projects provides a crucial offtake guarantee, de-risking investment and creating a stable demand signal.
• The progress in Australia highlights a strategic split: Europe continues to pursue a high-cost, technology-push model centered on green hydrogen, while Australia is executing a market-pull strategy based on mature EAF technology and circular economy principles that delivers immediate results. This industrial demand for cleaner energy mirrors efforts by firms like BP and Shell to align their energy projects with decarbonization goals.

Infra Build 2 Key Expansions Confirm EAF Technology Maturity (2025 to 2026)

The steel industry’s decarbonization pathway is bifurcating based on technological readiness, with mature Electric Arc Furnace technology enabling immediate, large-scale emissions reductions while next-generation hydrogen and electrolysis systems remain in earlier development stages. This split confirms that proven, high-TRL (Technology Readiness Level) solutions are the primary driver of industrial decarbonization for the period leading to 2030.

• While the 2021–2024 timeframe involved extensive debate over various green steel pathways, the period since January 2025 has been characterized by decisive investment in commercially proven EAFs. Infra Build‘s major upgrades at its Laverton and Queensland facilities exemplify this trend, prioritizing execution over experimentation.
• The high TRL of EAFs allows operators to focus on optimizing the two key inputs: electricity and feedstock. Infra Build‘s move to source up to 25% of its NSW electricity from renewable sources is a direct consequence of this technological maturity, shifting focus to input quality.
• This focus on optimizing existing technology also fosters pragmatic innovation. Infra Build‘s partnership with Biomet Pty Ltd to develop biochar as a coal substitute is a prime example of enhancing a mature process rather than replacing it, a strategy that lowers risk and accelerates adoption.
• This stands in stark contrast to the challenges facing H 2-DRI and advanced electrolysis technologies, which are frequently cited as causes for project delays. Their lower TRL makes them a longer-term solution, primarily for post-2030 primary steelmaking, not a viable option for immediate, large-scale industrial deployment.

SWOT Analysis, Infra Build Green Steel Market Position

Infra Build’s strategy capitalizes on the strength of proven technology and circular economy principles, positioning it as a leader in near-term industrial decarbonization. However, its long-term growth is exposed to threats from finite scrap supply and dependence on the pace of grid decarbonization, creating a complex risk-reward profile.

Table: SWOT Analysis for Infra Build’s EAF-Based Strategy

2027 Outlook, Infra Build Scrap Supply and Grid Integration

Looking ahead to 2027, the continued success and scalability of the EAF-based decarbonization model will be determined by two critical external factors: the intensifying global competition for finite scrap steel resources and the velocity of renewable energy deployment to decarbonize national power grids. These two variables, more than the technology itself, will dictate the pace and cost of green steel production.

• If the global rush to build EAF capacity accelerates beyond 2026, watch for significant upward pressure on high-quality scrap steel prices and the potential introduction of scrap export restrictions by major suppliers. This could directly impact Infra Build‘s primary feedstock cost and availability.
• If Australia’s renewable energy build-out continues to gain momentum, watch for Infra Build and its competitors to sign larger and more sophisticated power purchase agreements. This would enable the marketing of steel with a certified low-carbon footprint, potentially unlocking the green premiums seen in Europe and attracting customers with stringent Scope 3 emissions targets. This mirrors aggressive clean energy procurement from companies like Meta and Google.
• These could be happening as the commercial case strengthens. The establishment of a €100-€150 per tonne green premium in European markets, noted in 2024 reports, provides a powerful incentive for steelmakers to invest in the necessary renewable energy infrastructure, similar to how utilities like AEP are partnering on new energy technologies to meet industrial demand. The scale of investment may soon attract sovereign wealth funds like Saudi Arabia’s PIF, which are already financing massive green energy projects.

The questions your competitors are already asking

This report covers one angle of the commercial pathway for green steel production. The questions that matter most depend on your work.

• Other steel companies expanding electric furnace capacity
• Steel scrap supply constraints and price outlook
• Renewable energy contracts for industrial manufacturing
• Status of hydrogen steel projects globally

This report does not answer these. Enki Brief Pro does.

Your question, your angle, your framework. SWOT, PESTL, scenario modelling. The same niche depth, built around the decision your work actually depends on.

Run your first brief in Enki Brief Pro