Australia is making a major commitment to green steel production with the launch of a A$1 billion Green Iron Investment Fund, aimed at boosting low-carbon steel manufacturing and strengthening supply chains. The initiative is part of the government’s carbon neutral strategy, securing Australia’s role as a leader in sustainable iron and steel production. 

A significant portion of the fund, A$500 million, will be allocated to rescue the struggling Whyalla steelworks in South Australia. This move aligns with South Australia’s ambition to develop lower-emission steel production while preserving local jobs. The Whyalla bailout forms part of a larger A$1.9 billion state and federal package to stabilize operations and transform the site into a hub for green iron technology. 

As the world’s largest iron ore producer, Australia generated over A$100 billion in export income in 2023-24. With global demand shifting towards low-emission steel, the government’s green iron initiative will help future-proof Australia’s iron ore industry while reinforcing its ESG leadership. According to The Superpower Institute, green iron and steel opportunities could be worth up to A$400 billion, while a single green iron plant could contribute A$85 billion to GDP and create over 1,500 full-time jobs. 

The investment also benefits key Australian mining companies, including BHP, Rio Tinto, and BlueScope Steel, which are actively exploring low-carbon steel production. Emerging green iron innovators such as Calix, Element Zero, and the Helios Project will also play a critical role in advancing Australia’s clean energy transition. 

Beyond green steel, the Albanese government is strengthening Australia’s green metals sector through multiple initiatives. The government has committed A$2 billion in Australian-made aluminium, introduced production tax credits for hydrogen and critical minerals, and is funding major critical minerals projects via the Critical Minerals Facility. Additionally, A$3.4 billion has been allocated to Geoscience Australia to accelerate resource discovery, while the Hydrogen Headstart initiative is set to drive clean energy advancements. 

With elections approaching in May, the Labor government is positioning Australia as a global green iron leader, ensuring its economic and environmental future remains competitive in the rapidly growing low-carbon steel market. Prime Minister Anthony Albanese emphasized that this initiative will drive job creation while contributing to global emissions reduction at an unprecedented scale. 

Sources: 

https://esgnews.com/australia-launches-1b-green-iron-fund-to-boost-low-carbon-steel-and-secure-jobs/  

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