Chris Bowen MP, Minister for Climate Change and Energy
Josh Wilson MP, Assistant Minister for Climate Change and Energy
Madeleine King MP, Minister for Resources
The Albanese Government is investing in the future of Australian-made green metals with a $19.8 million grant to develop the production of low-emissions iron using Pilbara iron ore in Kwinana, Western Australia.
Funding will support a $48.8 million Front-End Engineering Design study for the NeoSmelt project, which is working towards replacing the traditional blast furnace steelmaking route by developing an electric smelting furnace to make low-emissions iron.
The electric smelting furnace (known as ESF) is a technology advance that could reduce emissions by as much as 2 tonnes of carbon dioxide per tonne of steel produced.
The innovation would cut emissions by millions of tonnes of carbon dioxide each year if rolled out Australia-wide.
NeoSmelt is a joint venture between BlueScope, BHP, Rio Tinto, Woodside Energy and Mitsui Iron Ore Development. The Kwinana facility would be Australia's largest ironmaking electric smelting furnace pilot plant.
The project is expected to generate up to 100 full-time equivalent roles during operations, potentially peaking to 300 during construction phase.
A final investment decision is expected in 2026, with operations at Kwinana planned to begin in 2028.
Comment attributable to Minister for Climate Change and Energy Chris Bowen:
"The Albanese Labor Government is backing business across the country to seize the opportunities of a Future Made in Australia, powered by low-emissions tech including reliable renewables.
"We are getting on with the job and delivering solutions for hard-to-abate sectors to decarbonise right now and paving the way for our future."
Comment attributable to Assistant Minister for Climate Change and Energy Josh Wilson:
"This Albanese Government investment in a crucial Australian industry could help secure the future of Australia's iron export industry and bolster global green steelmaking while accelerating the necessary shift away from fossil fuels.
"As the biggest iron ore producer in the world, every effort we make towards cutting emissions here at home has far-reaching benefits.
"Western Australians are experts at making and exporting high-quality metals-producing low-emission iron gives us yet another selling point in markets across the world.
"This project is a fantastic example of how the Albanese Government is helping Australian industries to make the biggest economic shift since the Industrial Revolution while securing Australian jobs, Australian-made products and Australia's net-zero future."
Comment attributable to Member for Brand, Madeleine King:
"This is a great example of WA's iron ore, gas, steel-making and clean energy sectors coming together to invest in technology critical for a low carbon future.
"The fuels, metals, fertiliser, chemicals, and grain shipped from Kwinana have powered Western Australia and the region since the 1950s.
"Kwinana is now playing a central role in the world's energy transition and a big part in global efforts to decarbonise.
"If we can decarbonise steel making, we will create far fewer emissions when building the cities of the world."
BACKGROUND
The steel industry accounts for 7% of global energy demand and generates between 7% and 9% of carbon dioxide emissions.
Currently, around 70% of steel is produced using energy intensive and high emission methods.
Funding for NeoSmelt is being delivered through the Australian Renewable Energy Agency (ARENA) from the $400 million Industrial Transformation Stream of the Albanese Government's $1.9 billion Powering the Regions Fund.
The Industrial Transformation Stream is designed to support industrial facilities in regional Australia to reduce emissions through innovative renewable energy, energy efficiency and electrification technologies.
