Australia has launched a $500 million fund to help establish a globally competitive green iron industry by 2031, aiming to position the country as a future powerhouse in low-emissions iron production.
The National Development Stream of the Green Iron Investment Fund, announced on September 13, will provide grant funding to early mover projects. The program is designed to support the development of commercial-scale green iron manufacturing and incentivise private sector investment in this emerging sector.
As the world’s largest exporter of iron ore, Australia is seeking to move up the value chain by converting more of its raw material into low-emissions iron. The government points to Australia’s renewable energy potential, mineral resources, and industrial capability as key enablers.
Minister for Industry and Innovation and Minister for Science Tim Ayres said green iron presents a “major opportunity to grow Australia’s iron ore industry and build a new industrial sector”.
“This $500 million investment lays the foundation for a multibillion-dollar industry and thousands of good, secure jobs,” he said. “Not only will it boost regional economies, but it will also cut emissions and help Australia deliver on its climate targets.”
Modelling by the Minerals Institute of Western Australia suggests that a single green iron plant could contribute $85 billion to the GDP over its life, support $2.4 billion in annual real income, and create 1540 full-time equivalent jobs.
Another 2023 report by Accenture estimated that a green metals industry could generate up to $122 billion in annual export earnings by 2040.
The fund complements other national initiatives including a $2 billion Green Aluminium Production Credit, $750 million through the Future Made in Australia Innovation Fund, and $10 million for a CSIRO-led Green Metals Innovation Network.
The program is open to both existing facilities and greenfield developments. Projects must be positioned to begin commercial production of green iron by 2031.
Applications open on October 28.
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