Australia is moving closer to its ambition of becoming a green iron manufacturing powerhouse with the launch of the National Development Stream of the Green Iron Investment Fund.
The program, backed by the Australian government, will provide $500 million in grant funding to drive the development of a domestic green iron industry, with the aim of creating jobs and adding value to local resources.
The initiative is designed to incentivise private investment and support early mover projects, with the goal of commencing commercial-scale green iron production by 2031.
Proponents of projects across the country have been invited to prepare applications ahead of the fund’s official launch on 28 October.
As the world’s largest exporter of iron ore, Australia has a strategic opportunity to reduce global emissions by decarbonising steelmaking, an industry responsible for about 8 per cent of carbon emissions worldwide.
“Australia is in the pole position to lead the global shift to green iron and steel. We have everything we need right here to grasp this opportunity,” the government announced as part of the launch.
“Abundant minerals under our soil, access to the best wind and solar resources in the world and Australian know-how, ingenuity and industry.”
Research has highlighted the significant economic benefits of developing a green iron industry.
The Minerals Institute of Western Australia has found that a single green iron facility could add a cumulative $85 billion to national GDP, generate $2.4 billion in real income annually, and create more than 1,500 full-time jobs.
A separate 2023 report by Accenture suggested a broader green metals industry could deliver up to $122 billion in additional export revenue by 2040.
Minister for Industry and Innovation and Minister for Science Tim Ayres described the program as a critical step in transforming Australia’s industrial landscape.
“Green iron is a major opportunity to grow Australia’s iron ore industry and build a new industrial sector,” he said.
“This $500 million investment lays the foundation for a multi-billion-dollar industry and thousands of good, secure jobs.
“Not only will it boost regional economies, but it will also cut emissions and help Australia deliver on its climate targets.
“The Green Iron Investment Fund is open for both existing facilities and greenfield projects to help early movers.”
The Green Iron Investment Fund builds on other initiatives under the government’s Future Made in Australia agenda, including the $2 billion Green Aluminium Production Credit, $750 million for innovation and development through the Future Made in Australia Innovation Fund, $10 million for the CSIRO-led Green Metals Innovation Network, and $180 million for the Australian Economic Accelerator.
