Guidelines are now available for the National Development Stream of the Green Iron Investment Fund, giving eligible businesses a head start to prepare their applications. The program will offer $500 million in grant funding to support the growth of an Australian green iron industry.
The $1 billion Green Iron Investment Fund will help crowd-in private investment for a strong green iron industry, with:
- $500 million available to applicants across Australia through the National Development Stream
- up to $500 million earmarked for the transformation of the Whyalla Steelworks.
Grant funding for the National Development Stream will support early mover projects ready to start commercial scale production of green iron by 2031.
Designed to complement existing government supports, the fund will help cover capital costs to establish commercial-scale green iron manufacturing facilities.
With global demand for green iron rising, this is a strategic opportunity to build a multibillion-dollar manufacturing industry in Australia. A green iron and steel industry could add up to $96 billion annually to Australia's export revenue by 2040, according to a 2023 Accenture report.
Locally produced green iron will help Australia meet global and domestic decarbonisation ambitions. Global steel production accounts for about 7-9% of the world's greenhouse gas emission, with conventional ironmaking technology responsible for around 90% of emissions from steelmaking. By value adding to our iron ore resources, we can offer a lower emissions alternative to one of the world's most carbon intensive industries.
The separate Whyalla stream will provide up to $500m to help the new owner of Whyalla Steelworks establish a green iron facility. This will support the long-term transformation of the South Australian steelworks, which is currently in administration with a sale process underway. Details of this stream will be subject to negotiation with prospective buyers of the steelworks.
