Realising WA's green iron potential

Steelmaking is highly carbon-intensive, accounting for 6% to 9% of global emissions each year. Ironmaking generates up to 90% of steel emissions under the most common process.

Current decarbonisation options for ironmaking use higher-grade iron ore feedstocks, including magnetite, or increasing production via the Direct Reduced Iron (DRI) pathway. While Direct Reduced Iron offers substantial emissions reduction potential, less than 5% of global iron ore meets the required purity level.

Transformational reductions in ironmaking emissions will require the development and commercialisation of new processes capable of producing green iron using lower-grade ore feedstocks.

As the world's largest iron ore exporter, Western Australia’s (WA) iron ore industry is actively exploring pathways to support global decarbonisation of the steel industry and generate local economic value.

If these technologies are commercialised and supported with the right policy settings, WA could produce at least 4.5Mt of green iron by 2030, with industry feedback indicating this nearer term opportunity could be larger.

Over the longer term, WA could supply in excess of 14% of global green iron by 2050, leveraging established industrial capability and renewable energy generation potential.

This could reduce global emissions by 1.2% (456Mt of CO2), nearly equivalent to Australia's current domestic emissions (465Mt of CO2), generate $74 billion in economic value in addition to iron ore exports, and support 19,600 additional ongoing direct jobs by 2050 (excluding construction jobs).

However, WA’s future position as a globally competitive green iron producer is not guaranteed.

Other regions are moving quickly to develop green iron capabilities and lower the cost of low emissions energy generation – the main cost factor in green iron production.

Read the report in full here.