HD Renewable Energy (HDRE), through its ZEBRE platform, has signed a memorandum of understanding (MoU) with Greensteel Australia to establish a long-term renewable energy partnership supporting the development of renewable-powered green steel production in Australia.
The collaboration will draw on ZEBRE’s 437MW renewable energy portfolio in South Australia, together with its battery storage and dispatch capabilities, to support Greensteel Australia’s ambition to develop a globally competitive, ultra-low-emissions steel production hub.
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The partnership is expected to enable greater use of renewable energy while enhancing power reliability, operational flexibility and cost management for the energy-intensive industry.
Under the MoU, ZEBRE plans to leverage its South Australian assets, including the 111MW/330MWh Templers battery energy storage project and the 210MW Solar River hybrid solar and storage project, to support the gradual introduction of renewable energy supply to the Australian steelmaker.
The Solar River site, located near Robertstown, around 125km north of Adelaide, will generate electricity from approximately 400,000 solar PV modules and includes plans for a 256MW co-located battery storage system.
ZEN Energy is varying the development approval to allow up to 8-hours of duration but plans to proceed in the near term with 2.5-hours of storage capacity.
Meanwhile, the 330MWh Templers BESS project, secured under a 20-year power purchase agreement, provides 3-hours of energy storage and is scheduled to commence commercial operations by the end of 2025.
Once operational, the project will provide dispatchable, fast-response generation into the South Australian market, contributing to grid stability as the state transitions away from thermal generation.
The partnership between HDRE Group and Greensteel Australia also includes plans to explore the development of a 400MW large-scale battery storage system at the production hub, integrated with behind-the-meter storage and power management systems, to improve renewable energy stability and provide greater price certainty as the steelworks scales production.
ZEBRE was established in late 2024 as a joint venture between HDRE and Australian renewable energy developer ZEN Energy, with a total target investment capacity of 1.4GW.
Under the planned structure, HDRE Trust II secured an equity ratio of 70%, with Zen Future, a subsidiary of ZEN Energy, obtaining the remaining 30%.
The platform is focused on developing 400MW of solar generation and 1GW of energy storage capacity.
The collaboration comes as Australia aims to position itself to capitalise on growing demand for green metals, with solar PV expected to play a role in decarbonising mining and metals production.
Steel producers in Japan and South Korea may struggle to secure sufficient renewable energy to meet demand for low-emissions steel, opening an opportunity for Australia to supply green iron worth an estimated US$2 billion annually by 2030, according to analysis from the Institute for Energy Economics and Financial Analysis.
