The steel industry has a significant role to play en route to net zero, with Australia to be a key cog in the decarbonisation journey.
As the world accelerates towards net zero, heavy industries are undergoing a rapid transformation.
Steel production is responsible for more emissions than shipping and aviation combined, so no surprise the sector is racing to reinvent itself. Market volatility, evolving consumer expectations and a shifting policy landscape make decarbonisation both urgent and complex.
The surge in green steel demand and production in recent years is a positive sign. Globally, more than 110 green steel projects, with a combined value of more than $US95 billion, were announced in 2020–23. However, ongoing economic and geopolitical uncertainty could stall momentum altogether – unless intent quickly turns into action.
Australia is uniquely positioned to lead the green steel transition. With world-class magnetite reserves and high‑purity hematite in the Pilbara, abundant renewable energy resources, and policies that actively support downstream processing, the foundations are strong. But the pace of change is accelerating, and the first-mover advantage is real.
Unlocking green steel’s potential at scale will take more than new furnaces. It will demand a shift in thinking altogether – of supply chains, digital infrastructure, and the workforce – to prepare for this new era.
The rise of scrap
Scrap metal is becoming one of the most important feedstocks in steelmaking, offering a far lower emissions profile than iron ore. But while the market for scrap is growing, it is fragmented, unpredictable, and marked by highly variable quality.
Electric arc furnaces (EAFs) can require up to six times more scrap metal than traditional blast furnaces, and producers need consistent feed to produce steel that meets modern quality standards. This makes supply security and quality forecasting mission-critical.
Australia is already acting on this opportunity. Instead of just exporting raw materials, there’s a clear push to refine and process them locally, turning industrial sites into modern powerhouses and building a stronger, more competitive sector right here at home.
The goal is clear: create a competitive domestic green steel sector that doesn’t just mine the inputs, but refines and processes them onshore.
To meet this vision, steel producers are rethinking how scrap is sourced by pursuing buyback programs, vertical integration, and digital scrap marketplaces to secure reliable inputs.
Mining companies will increasingly be part of this conversation, particularly as demand grows for recycled metals, precision feedstocks, and tighter integration between raw material inputs and downstream processing.
Alongside scrap, hydrogen-based direct reduced iron (DRI) is emerging as the other key pathway to low-carbon steel. In this process, green hydrogen replaces carbon-based materials (such as coal) as the reductant, cutting process emissions significantly.
Hydrogen, however, introduces new safety considerations – such as increased explosion risk, material embrittlement, and the need for specialised leak detection – that many traditional steelmaking environments are not equipped to handle. Building that infrastructure, while locking in reliable renewable-hydrogen supply, will be central to scaling DRI competitively.
The key to operational success
The move to green steel represents more than just a shift in physical infrastructure; it’s a system-level reset. New furnaces must be supported by smarter digital architecture capable of connecting disparate data sources, adapting to volatile inputs, and optimising operations in real time.
Yet many steel producers still operate on legacy systems that were not designed for the flexibility and intelligence needed today.
According to Accenture’s research, the ability to connect operational technology (OT) and information technology (IT) is now foundational to building competitive, decarbonised operations.
For businesses to modernise their fundamental technology capabilities – their “digital core” – they must begin with cloud-based data systems that provide clear visibility across the entire value chain. This enables real-time insights into supply chains, predictive quality control, and integrated energy monitoring.
When combined with AI and automation, these systems can significantly reduce waste and uncover operational efficiencies, ultimately boosting the bottom line.
At the same time, next-generation enterprise resource planning (ERP) platforms like SAP S/4HANA provide the level of control required to manage raw materials, monitor energy consumption, and streamline maintenance in increasingly complex and adaptive steelmaking environments.
As seen in other resource-intensive sectors, companies that fail to digitise risk falling behind – not just in efficiency, but in their ability to meet emissions standards and capitalise on emerging demand.
Shaping green steel’s viability
As the steel sector transitions to low-emissions production, operational predictability and energy competitiveness are emerging as two of the most critical factors for long-term success.
EAF operations, while cleaner and more flexible than traditional blast furnaces, are inherently more sensitive to input variability and external market forces. From inconsistent scrap metal quality to energy price spikes and supply chain bottlenecks, the margin for error is shrinking.
That same volatility hits downstream steelmakers when ore or energy inputs fail to arrive on spec or on time. These disruptions are not minor – they account for an estimated $67 billion in lost productivity across the global mining industry each year.
Meeting customer expectations for low-emissions steel at a competitive price will require smarter planning tools and production simulation platforms capable of managing this variability in real time.
The ability to forecast input quality, adapt to dynamic scheduling and optimise output under changing conditions is now fundamental to maintaining profitability and performance.
At the same time, energy use is becoming a defining factor in steel’s cost structure. With electricity accounting for between 15 per cent and 20 per cent of total production costs in EAF operations, access to reliable, low-cost renewable power is critical. Without it, even the most advanced green steel operations will struggle to remain economically viable.
The ambition is clear: not only to export the materials needed for the global energy transition, but to manufacture them domestically – cleanly, competitively, and at scale.
For mining and metals producers alike, this means energy strategy can no longer be treated as a support function. Long-term competitiveness will depend on securing access to renewables, building energy partnerships, and exploring on-site generation and power purchasing agreements.
Those that can manage both the volatility of inputs and the rising complexity of energy will be best positioned to lead in the green steel economy.
Embracing a national mandate
The move to low-emissions steelmaking via DRI, EAFs and hydrogen demands a wholesale rethink of roles, safety protocols and operating models.
Hydrogen raises new hazards that call for specialised leak-detection, real-time monitoring and revised emergency plans, while AI-enabled maintenance and remote supervision are already reducing field risks and lifting productivity.
Meeting this moment hinges on workforce readiness. Targeted reskilling, backed by digital tools and a strong safety culture, will separate leaders from laggards as green-metals capacity grows.
For miners, the mandate is equally clear: shift from supplying ore to enabling low-carbon value chains. By securing quality scrap, linking with renewable-energy infrastructure and delivering traceable, high-purity inputs, the sector can anchor the green-steel economy.
Ultimately, success will flow to those who fuse materials expertise with data intelligence – the intelligent convergence of “atoms and bits” that will define tomorrow’s sustainable industry.
By Eric Croeser, managing director and mining and metals lead APAC region, Accenture ANZ
This article appeared in the Winter edition of Mining Magazine.
