The Australian federal government has announced that, together with the South Australian state government, it will provide funding to boost domestic green iron production and its supply chains.
Accordingly, the Green Iron Investment Fund worth A$1 billion will support green iron projects and will attract private investment to the industry, up to A$500 million of which will be allocated for the green transition and energy transformation of the Whyalla steelworks. Also, at least A$500 million will be provided to investors across Australia and to the other existing plants and new projects that can add more value to the green ironmaking.
Apart from providing jobs and added-value, investment in green iron and steel will increase demand for Australia’s iron ore in the future as the world switches to low-carbon iron and steel. According to the official data, being the world’s largest iron ore producer, Australia’s income from iron ore exports amounted to over A$100 billion in the financial year 2023-24.
Also, green metals are pivotal for global decarbonization, with iron and steel production accounting for eight percent of global emissions and iron accounting for up to 90 percent of that share, the Australian government indicated.
