Growing Australia's iron advantage

Australia could produce 20% of global green iron by 2050...

• 53% of global steel production in 2050 is forecast to be green (30%) or lower emissions (23%) steel
• The shift away from conventional steelmaking will create new supply chains
• Australia has the renewable energy capabilities to produce green iron, particularly compared to other iron ore exporters and existing iron producers
• Australia is forecast to be a cost-competitive producer of green iron in 2030 and 2050 if the industry can get to scale
• Australia could supply 20% of global green iron in 2050 (310Mt)

...reducing global emissions by 1.7% and generating growth 

• Steel production is highly emissions intensive, generating between 6% to 9% of global CO2 emissions
• Ironmaking is the most emissions intensive part of the steel value chain, responsible for up to 90% of emissions
• Australia's green iron potential is equivalent to reducing global steel emissions by 1.7%, surpassing Australia's current emissions (1.2% of global emissions)
• Australia's green iron potential could add $103 billion to the economy and support 27,500 direct jobs in 2050

The industry faces short-term feasibility and scale challenges

• Australia's green iron potential requires 16TWh of additional renewable energy generation by 2030 and 775TWh by 2050 (nearly 2.4 times the National Renewable Energy Target for 2030)
• >90% of this electricity is used to make green hydrogen
• $28.8 billion of investment could be required by 2030 to kick-start green iron production, including a production plant, hydrogen facility and renewable energy and battery systems
• Approvals processes and the risk of new technologies continue to be barriers to investment

Policy solutions should prioritise these immediate issues

• In the short term, key barriers are the feasibility of early-stage technologies, scale of infrastructure required and availability of capital
• Policy initiatives should urgently address these barriers to enable large-scale investment and drive industry growth
• As the industry moves towards a 'scale-up' phase, additional support will be required to maintain Australia's forecast cost competitiveness, connect Australian supply to demand, and develop a skilled workforce

Read the full report here.