The Australian Government has unveiled the $1bn Green Iron Investment Fund, aimed at establishing Australia as a leading nation in green iron manufacturing.
The fund is designed to advance the production and supply chains of low-emissions iron and steel by backing greenfield projects and stimulating substantial private investment.
The Green Iron Investment Fund will allocate up to $500m to assist in the transformation of the Whyalla steelworks, reinforcing local employment and facilitating the energy transition.
A minimum of $500m will be available to applicants across Australia, including both existing facilities and new projects that aim to enhance the value of the country’s iron ore industry domestically.
The competitive fund has been crafted following extensive dialogue with the sector through the Green Metals Expert Panel.
Australia generated more than $100bn in export revenue in 2023–24 and the broader iron and steel industries support more than 100,000 jobs, both directly and indirectly.
Green metals are crucial for worldwide decarbonisation efforts, considering that iron and steel production accounts for 8% of global emissions, with iron contributing up to 90% of this figure, according to the government.
Research from the Minerals Institute of Western Australia indicates that a single green iron plant could contribute an additional $85bn to the gross domestic product, increase real income by $2.4bn annually and create 1,540 full-time equivalent jobs.
Minister for Industry and Science Ed Husic said: “The Australian Government is backing our green metals producers as the world moves towards net zero.
“The Green Iron Investment Fund will enable Australia to take advantage of our existing iron ore supply chain, renewable energy potential, world-class research and high-skilled workforce.
“Through this $1bn fund we are supporting industrial diversification, productivity and economic growth, for a Future Made in Australia.”
The announcement of the Green Iron Investment Fund complements the Albanese Labor Government’s existing commitments to bolster Australia’s thriving energy and mining sectors.
The government has already announced a $2bn investment in Australian-made aluminium and passed legislation for Production Tax Credits for hydrogen and critical minerals.
It has also made investments in significant critical minerals and rare earths projects through the Critical Minerals Facility.
Furthermore, the government has invested $3.4bn in Geoscience Australia and provided funding for Hydrogen Headstart to boost the hydrogen and clean energy industries.
