The door is open for Australia to become a green iron “powerhouse” following a $500 million grant offered by the Federal Government.
Described as putting Australia “one step closer” to becoming a manufacturing powerhouse, the move is said to boost jobs and add value “right here at home” while building Australia’s future.
The National Development Stream of the Green Iron Investment Fund is positioned to incentivise private investment and drive growth with Australia in pole position to lead the global shift to green energy and steel.
The move is said to complement Australia’s emerging and established mining projects as well as the country’s strong wind and solar infrastructure.
“Green iron is a major opportunity to grow Australia’s iron ore industry and build a new industrial sector,” Minister for Industry and Innovation Tim Ayres said.
“This … investment lays the foundation for a multi-billion-dollar industry and thousands of good, secure jobs. Not only will it boost regional economies, but it will also cut emissions and help Australia deliver on its climate targets.”
As the world’s biggest exporter of iron ore, Australia will play a key role in decarbonising one of the most carbon-intense industries with steelmaking contributing to around eight per cent of emissions globally.
It follows research from the Minerals Institute of Western Australia which found a single green iron plant could add a cumulative $85 billion to gross domestic product and add $2.4 billion in real income per year, with 1540 jobs said to be created every year.
Other investments in green metals have been announced by the Federal Government, including a $2 billion green aluminium production credit to support smelters transition to renewable electricity.
“The Green Iron Investment Fund is open for both existing facilities and greenfield projects to help early movers,” Ayres said.
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