The Hon Chris Bowen MP, Minister for Climate Change and Energy
The Hon Madeleine King MP, Minister for Resources
Senator The Hon Tim Ayres, Minister for Industry and Innovation
The Hon Anne Aly MP, Minister for Small Business and International Development
The Hon Josh Wilson MP, Assistant Minister for Climate Change and Energy
The Albanese Government is backing Australian innovation and manufacturing with up to $26 million for technology that could turn Australian iron ore into lower-emissions iron using renewable electricity.
Through the Future Made in Australia Innovation Fund, administered by the Australian Renewable Energy Agency (ARENA), the Government is supporting Perth-based Element Zero to test whether Australian iron ore can be converted into high purity iron at pilot scale, using an electricity-based process powered by renewables.
Element Zero's $53.6 million project could help create new opportunities to add value to Australia's world-class iron ore resources, build specialist skills and strengthen Australian industrial supply chains.
Iron and steel production is one of the world's largest industrial sources of emissions, as conventional ironmaking typically uses coal and other carbon-based materials to convert iron ore into iron.
Element Zero's project will test whether an alternative process - electrochemical ironmaking, which is powered by electricity and uses molten salts - could produce lower-emissions iron efficiently without relying on coal.
The pilot will test a process designed to operate at temperatures of around 400 to 450°C, which are lower than the temperatures typically used in traditional ironmaking processes.
The project will be delivered in two stages. The first stage will involve a pilot plant capable of producing around one tonne of iron per day.
Subject to a formal review, the second stage will scale production up to 10 tonnes per day.
The pilot will test different types of Australian iron ore, including hematite and magnetite, and help demonstrate the technology to Australian and international steelmakers.
This investment is part of ARENA's efforts to build a portfolio of projects, also including hydrogen-based approaches, aimed at unlocking viable pathways for producing green iron at scale.
Green metals is a key priority under the Albanese Government's Future Made in Australia agenda, helping Australia take advantage of our world-class iron ore resources and renewable energy to make more products here and capture new opportunities as the global economy decarbonises.
Quotes attributable to Minister for Climate Change and Energy, Chris Bowen:
"Australia has the iron ore the world needs and some of the best renewable energy resources in the world - the opportunity is to bring those advantages together and make more things here.
"This investment backs Australian technology that could add more value to Australian iron ore, support Australian manufacturing and help cut emissions from one of the hardest parts of the global economy to decarbonise."
Quotes attributable to Minister for Resources, Madeleine King:
"Australia's iron ore industry has long been a cornerstone of our economy, and projects like this are helping position it for the future by developing new ways to turn our world-class resources into higher-value products here in Australia."
Quotes attributable to Minister for Industry and Innovation, Tim Ayres:
"Australian researchers and companies are developing world-leading technologies, and this $53.6 million project is an important step in turning Australian innovation into Australian manufacturing capability."
Quotes attributable to Assistant Minister for Climate Change and Energy, Josh Wilson:
"Ironmaking is one of the most emissions-intensive parts of steel production, which is why investing in cleaner ways to make iron is such an important opportunity for Australian industry, particularly here in Western Australia."
Quotes attributable to Member for Cowan, Anne Aly:
"Western Australia has powered our economy for generations, and projects like this are about making sure we're also at the forefront of the industries and jobs of the future.
"Backing WA companies to develop new technologies means more opportunities to turn our world-class resources into higher-value products right here at home."
