Thank you all for being here. I acknowledge the Ngunnawal people, and all First Nations people present. Thank you to Superpower Institute Chair Rod Sims for the invitation. I acknowledge senior officials Meghan Quinn, Nadine Williams, Alex Heath, Shane Gaddes and Bryan Moroney; and Fiona Simon, CEO of the Australian Hydrogen Council.
It's a pleasure to join you for the launch of the Superpower Institute's new report, A Green Iron Plan for Australia. Despite the Institute's ambitious name, the report contains no capes, no invisibility, no flying. Just decarbonisation, hydrogen, and comparative advantage. The Superpower Institute really knows how to speak to a Canberra crowd.
The report underscores a central point: done right, climate policy can deliver both environmental and economic benefits. It's not about choosing between values and value. As economists might say, it's a Pareto improvement with some serious decarbonisation upside.
Australia faces a clear strategic question. As global demand for high‑emissions products declines, what replaces them in our export mix? The answer, in part, lies in whether we can develop new low‑emissions industries that play to our comparative strengths.
The Superpower Institute's report outlines the potential for a green iron industry in Australia - both as a way to reduce emissions and to diversify our industrial base.
Of course, establishing a new industry is never costless. There are infrastructure gaps, technology risks, and commercial uncertainties. That's why it makes sense to consider targeted public support - not as a substitute for private investment, but as a way of helping markets overcome early‑stage coordination challenges. As any economist will tell you, when the benefits of investment spill over beyond the firm that bears the cost, there may be a case for government to tilt the playing field ever so slightly.
Let me set out how the government is approaching this.
Future Made in Australia
Australia has natural advantages - in renewable resources, in mineral wealth, and in a stable institutional environment. The Future Made in Australia agenda seeks to create the conditions under which private investment in key sectors can be accelerated.
We're not looking to reinvent Australian industry from scratch. But if the world is retooling its supply chains for a net zero future, we have an interest in making sure we're not just at the loading dock.
As Climate Change and Energy Minister Chris Bowen outlined in his 2024 Climate Statement, most of our trading partners are pursuing net zero targets - and looking to decarbonise their imports as well as their domestic production. Treasurer Jim Chalmers's discussion with China during the Strategic Economic Dialogue made clear that green steel is front‑of‑mind for both countries.
To help facilitate investment in these sectors, the government has established the $1.7 billion Future Made in Australia Innovation Fund. This includes $750 million earmarked specifically for green metals. It aims to support the development and commercialisation of new technologies - including in batteries, low‑carbon fuels, and clean energy manufacturing.
The Department of Industry projects that green iron demand could reach 852 million tonnes by 2050. That's not just a market trend - it's a long‑term structural shift in global trade.
And with our iron ore reserves, renewable energy potential, and stable institutions, Australia is one of the few countries with a plausible shot at becoming a low‑cost green metals producer.
Green Iron Investment Fund
In parallel, the government has created the $1 billion Green Iron Investment Fund to support early‑mover green iron projects. Its aim is to share some of the upfront capital risk where commercial scale hasn't yet been demonstrated - helping to crowd in private investment, not displace it.
Of this funding, $500 million has been earmarked for the long‑term transformation of the Whyalla Steelworks - helping to shore up regional jobs and reduce emissions intensity. The remaining $500 million is open to projects right across the country, including in places like the Pilbara, Gladstone and other regions with iron ore deposits or industrial infrastructure.
Momentum is already building. BlueScope, BHP and Rio Tinto have announced plans to jointly develop a green iron pilot plant - aiming to produce between 30,000 and 40,000 tonnes annually by 2028, subject to funding. That would be Australia's largest electric smelting furnace project to date.
When combined with the $2 billion commitment to green aluminium, this brings the total to $3 billion invested in low‑emissions metals - reflecting a broader effort to embed long‑term value into our resource sector.
In short, if we're going to dig it up, we may as well refine it here, sell it for more, and cut emissions in the process.
Innovation and technology
There are still technological hurdles to overcome. Direct reduced iron processes - particularly those using hydrogen - often rely on high‑grade ores not typically found in the Pilbara. This makes adaptation essential if Australia is to compete in this space.
The Innovation Fund is designed to help bridge these gaps. It provides support across the innovation pipeline - from research to demonstration scale - and aims to accelerate commercial readiness.
ARENA will administer the Fund over 10 years. It has already invested over $24 million in green iron technologies, such as electric smelting and hydrogen direct reduction. These efforts are designed not to pick a technological winner, but to expand the menu of viable commercial options.
Think of it as spreading your chips across the roulette table - only the wheel is turning slowly, and the croupier wants you to decarbonise.
Renewable hydrogen
Hydrogen plays a critical role in some green iron pathways, particularly as a reducing agent in the production process. In this context, it functions as a feedstock - not just a fuel.
However, transporting hydrogen is expensive. Embedding it in products like green iron or green alumina may offer an efficient export pathway.
The government's National Hydrogen Strategy, released last year, outlines the use cases for renewable hydrogen in industry. These include refining, steelmaking, and enabling export‑oriented value chains.
We've legislated a Hydrogen Production Tax Incentive, launched the Hydrogen Headstart program, and identified the first successful project from its initial funding round.
These measures are designed to attract investment, expand domestic capability, and connect Australia to emerging global hydrogen markets.
The connection between hydrogen and green iron is not just technical - it's economic. Each helps create the demand the other needs to become viable at scale.
Guarantee of Origin scheme
To support exports of verified low‑emissions products, the government has legislated the Guarantee of Origin scheme, which passed parliament in late 2024 and takes effect from late 2025.
The Guarantee of Origin scheme will provide emissions certification for renewable hydrogen and green metals - forming the accounting backbone for net zero supply chains.
Our government's 2024-25 Budget allocated $32.2 million to fast‑track the scheme, initially focused on hydrogen and later expanding to low‑carbon liquid fuels and metals.
Credible product certification is not just a tick‑box exercise. It's what gives confidence to investors, integrity to our exports, and transparency to our transition.
A smarter approach to investment facilitation
In addition, the government has created a 'Front Door' for investors with major transformational proposals - aimed at reducing friction and accelerating approvals for nationally significant projects.
Think of it as red carpet meets regulatory coordination. It doesn't guarantee funding or outcomes - but it does reduce bureaucracy and improve the speed and clarity of engagement.
The Front Door will prioritise projects with transformational potential, assist proponents in navigating complex approval systems, and coordinate with existing grant programs and investment vehicles.
In short, it's not about directing the orchestra. It's about making sure they all have the same sheet music - and that the percussion section isn't stuck filling out form 27C in triplicate.
Conclusion
To conclude: no one thinks public investment is a substitute for private capital. But there are moments - especially during structural transitions - when governments can play a critical role in reducing uncertainty, addressing market failures, and de‑risking early‑stage ambition.
That's the role we're trying to play - carefully, selectively, and with an eye to long‑term comparative advantage.
Green iron may not yet be a core export, but it could become one - if we get the policy architecture right.
With strong analysis, pragmatic policy, and industry leadership, we can shape a cleaner, more competitive future.
And if we get it right, we might just discover that Australia's real superpower isn't time travel or X‑ray vision - it's turning iron ore into opportunity.
