South Australia is positioning itself as a global frontrunner in green iron and steel production by launching a new strategy aimed at decarbonizing the industry.
The state government unveiled its Green Iron and Steel Strategy, attracting major industry players to a high-profile forum in Adelaide.
Strategic Objectives and Action Items
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 central component of the plan is the ambitious goal to facilitate the development of a new hydrogen-based green iron plant in the state by 2030 or sooner.
Government Funding and Global Expression of Interest
To support this initiative, the South Australian government has allocated $3.6 million in the latest State Budget to drive a global expression of interest (EoI) process.
This process will engage companies in the development of a green iron industry and supply chain within the state.
Over 150 organizations, including major industry players like BHP, BlueScope, Fortescue Energy, and others, have registered their interest in participating in this transformative initiative.
Harnessing South Australia’s Natural Advantages
Premier Peter Malinauskas emphasized South Australia’s natural advantages, including abundant magnetite resources and renewable energy generation, positioning the state as a potential global powerhouse in green iron production.
He highlighted the opportunities that span the entire supply chain, from mining to port operations, involving the mining, infrastructure, energy, and technology sectors.
Building on Competitive Edge
The strategy builds upon a recent study that underscored South Australia’s competitive edge in green iron production.
The research revealed a 21% cost advantage for South Australian green iron compared to shipping raw materials to Europe, citing the state’s significant magnetite reserves, leadership in renewable energy and hydrogen economy, and the proximity of these assets to existing steelmaking facilities.
Next Steps and Global Alignment
Companies interested in participating in the EoI process have until October 1 to submit their expressions of interest.
A comprehensive 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 decarbonize the steel industry, a significant contributor to industrial carbon emissions.
By leveraging its natural resources and dedication to renewable energy, South Australia aims to lead the green iron and steel revolution, potentially reshaping the global steel production landscape.