South Australia is positioning itself as a global leader in green iron and steel production with the launch of a new strategy aimed at decarbonising the industry.
The state government unveiled its Green Iron and Steel Strategy last week, attracting representatives from major mining, steel, and energy companies to Adelaide for a high-profile industry forum.
The strategy outlines three key objectives and nine action items to establish a world-leading green iron industry and supply chain in South Australia.
A centrepiece of the plan is the ambitious goal to facilitate a new hydrogen-based green iron plant in the state by 2030 or earlier.
To support this initiative, the South Australian government has committed $3.6 million in the latest State Budget.
This funding will drive a global expression of interest (EoI) process, engaging companies in the development of a green iron industry and supply chain within the state.
More than 150 organisations have registered to attend the industry forum, including industry giants such as BHP, BlueScope, Fortescue Energy, GFG Alliance, Nippon Steel, and Thyssenkrupp.
The first phase of the EoI process will involve a four-month detailed engagement between companies and the government to define ways to support industry investment in South Australian green iron.
South Australian Premier Peter Malinauskas emphasised the state’s natural advantages, stating: “With our abundant magnetite resources and renewable energy generation, South Australia is well placed to become a global green iron powerhouse.”
He added that the opportunities span the entire supply chain, from ‘pit to port’, encompassing mining, infrastructure, energy, and technology sectors.
The strategy builds on a recent study highlighting South Australia’s competitive edge in green iron production.
The research showed that South Australian green iron has a 21 per cent cost advantage compared to shipping raw components to Europe, citing the state’s significant magnetite resources, leadership in renewable energy and hydrogen economy, and the co-location of these assets with existing steelmaking facilities.
Companies interested in participating have until October 1 to submit their expressions of interest.
A report detailing the submissions and outlining the next steps is expected to be released before the end of the year.
This initiative aligns with global efforts to decarbonise the steel industry, a sector responsible for a significant portion of industrial carbon emissions.
By leveraging its natural resources and commitment to renewable energy, South Australia aims to position itself at the forefront of the green iron and steel revolution, potentially reshaping the future of steel production worldwide.
