The Western Australian (WA) Government has released a new report outlining the State’s potential to join the rapidly expanding global green steelmaking value chain.
The Western Australia’s Green Steel Opportunity research, led by the Minerals Research Institute of Western Australia (MRIWA), identifies five ways WA iron ore might be utilised to cut emissions from steelmaking.
“Our State’s abundant renewable energy resources alongside our world-leading iron ore industry puts WA front and centre in the global push towards green steel,” Premier Roger Cook said.
According to the WA Government, the green steel study considers the magnitude and scope of the capital needs and infrastructure required for these approaches.
The State Government stated that WA’s access to low-cost clean energy makes better quality iron feedstock products, such as green iron in the form of hot briquetted iron (HBI), a viable option for steelmakers to explore manufacturing in the State.
“As demonstrated in the report, a small scale 4.8 million tonne per annum (Mtpa) vertically integrated magnetite HBI plant in the Pilbara generates taxation benefits in the order of $31.7 billion to Australians during construction and operations through to 2050,” Mines and Petroleum Minister Bill Johnston explained.
Minister Johnston noted that the 4.8Mtpa plant is expected to increase employment in the Western Australian iron ore sector by 1,700 full-time jobs.
“The Cook Government now has a comprehensive understanding of the challenges facing the steel industry in its decarbonisation efforts and opportunities for future value adding of iron ore in Western Australia,” Minister Johnston said.
As green hydrogen technology advances and more renewable energy infrastructure is built, the research emphasises the State’s access to natural gas and renewable energy resources as critical to reducing emissions in steelmaking.
The Government added that international demand for iron ore material shipped directly from Western Australia is projected to remain strong.
“There is increasing interest in Western Australia by the steel industry given the access to our iron ore resources and renewable energy options. Coordinated efforts will be required to secure that investment,” Minister Johnston stated.
Western Australia’s Green Steel Opportunity report fulfils a 2021 election pledge and is consistent with various State Government programs such as Diversify WA, the Western Australian Climate Policy, the Energy Transformation Strategy, and the Sectoral Emissions Reduction Strategy.
“This report delivers on an important election commitment and will help to position Western Australia as an investment destination for low-emissions steel opportunities,” Premier Cook added.
