The federal government launched a $1 billion Green Iron Fund last week to boost green iron manufacturing and supply chains by supporting early mover green iron projects and unlocking private investment at scale.
Up to $500 million has been earmarked to support the Whyalla steelworks transformation, shoring up local jobs and helping with the energy transition.
At least $500 million will be open to applicants right around Australia, and accessible for both existing facilities and greenfield projects that can supercharge Australia’s world-leading iron ore industry by adding more value right here.
The competitive Fund has been designed in close consultation with industry via the Green Metals Expert Panel.
Australia is the world’s largest producer of iron ore, earning more than $100 billion in export income in 2023-24, with the wider iron and steel sectors supporting over 100,000 direct and indirect jobs.
As well as providing more jobs and value-adding onshore, investment in green iron and steel will secure future demand for Australia’s iron ore as the world moves toward lower-emissions iron and steel – and support global emissions reduction at a massive scale in the process.
Green metals are pivotal for global decarbonisation, with iron and steel production responsible for eight per cent of global emissions, with iron accounting for up to 90 per cent of these emissions.
The Minerals Institute of Western Australia has found that a single green iron plant could add a cumulative $85 billion to gross domestic product, add $2.4 billion in real income per annum, and create 1,540 full time equivalent jobs.
A 2023 Accenture report suggests a green metals industry could deliver up to $122 billion a year in export revenue to Australia’s economy by 2040.
This comes on top of the government’s existing measures to back in Australia’s thriving energy and mining sectors:
- $2 billion investment in Australian made aluminium
- Passing legislation to deliver Production Tax Credits for hydrogen and critical minerals
- Investment in major critical minerals and rare earths projects through the Critical Minerals Facility including Iluka and Arafura
- a $3.4 billion investment in Geoscience Australia to accelerate the discovery of resources
- Funding Hydrogen Headstart to catalyse Australia’s hydrogen and clean energy industries’
The Australian Steel Institute (ASI) welcomed the announcement.
The ASI represents 500 companies with steel generating $30 billion in annual revenue.