In what is the country's largest ever initiative to reduce carbon emissions , the government is partnering with New Zealand Steel to install a Clean Electric Arc Furnace at the Glenbrook Steel Mill in South Auckland.
It will cut 800,000 of emissions, that's 5% of national emissions in its first few years - the same as taking 300,000 cars off the road.
The cost of the project is $300 million and the taxpayer is stumping up $140 million of that.
The Council of Trade Unions is hailing an Emissions Reduction Plan for the Glenbrook steel mill as a blueprint for the transitioning away from fossil fuels.
CTU president Richard Wagstaff spoke to Guyon Espiner this morning.