Australia is one step closer to becoming a green iron manufacturing powerhouse, with the launch of the National Development Stream of the Green Iron Investment Fund.
The Albanese Labor Government is building Australia's future - which means investing in industries for the future, like green iron - to boost jobs and add value right here at home.
Delivering $500 million in grant funding to drive the growth of a strong domestic green iron industry, the program will incentivise private investment.
Australia is in the pole position to lead the global shift to green iron and steel.
We have everything we need right here to grasp this opportunity.
Abundant minerals under our soil, access to the best wind and solar resources in the world and Australian know-how, ingenuity and industry.
The Minerals Institute of Western Australia has found a single green iron plant could add a cumulative $85 billion to gross domestic product, add $2.4 billion in real income per annum, and create 1,540 full time equivalent jobs.
A 2023 Accenture report suggests a green metals industry could deliver up to $122 billion a year in export revenue to Australia's economy by 2040.
As the world's biggest exporter of iron ore, we have the potential to decarbonise one of the most carbon-intensive industries, steelmaking, which contributes around 8% of global emissions.
The Fund builds on other measures announced to position Australia as a green metals powerhouse including:
- The $2 billion Green Aluminium Production Credit to support Australian aluminium
smelters to further transition to renewable electricity. - $750 million to drive green metals innovation and development through the
Future Made in Australia Innovation Fund. - $10 million for the CSIRO led Green Metals Innovation Network to accelerate
domestic and international industry-research collaboration on testing, validating
and commercialising green metals technologies. - $180 million through the Australian Economic Accelerator to commercialise research
in priority areas such as green metals, critical minerals and renewable hydrogen.
The grant funding will support early mover projects ready to start commercial scale production of green iron by 2031.
Proponents of green iron projects across Australia are invited to start preparing applications for the National Development Stream ahead of its official launch on 28 October.
