Mining majors including Fortescue, Rio Tinto and BHP have weighed in on a new report examining Western Australia’s potential to decarbonise the global steelmaking chain.
The key takeaway from the Chamber of Minerals and Energy WA (CME) report is that the large-scale production of green iron in WA could reduce global emissions by 1.2 per cent by 2050 – effectively offsetting nearly every tonne of CO2 currently produced in Australia.
Production on such scale will also see over $74 billion in economic value generated and over 19,600 direct jobs supported.
“This report, in our view, provides a very conservative perspective on the economic opportunity for Western Australia,” Fortescue executive chair Andrew Forrest said.
“Our recent discussions in China make us feel confident that the opportunities are in fact much greater.
“With the right vision and support from government, we could be producing very significant quantities of green iron before 2030, securing Western Australia’s prosperity for generations to come.”
The report revealed $37.5 billion will be required by 2030 to produce an initial 4.5 million tonnes of green iron through a hydrogen-based ironmaking process.
Rio Tinto Iron Ore chief executive Simon Trott said the industry is going to need to work together to meet a greener steelmaking future.
“Rio Tinto is working on a range of projects with our customers and suppliers to reduce the carbon intensity of steelmaking, which contributes eight per cent of the world’s carbon emissions,” Trott said.
“We also recognise the task requires a collaborative effort, so we’re working with industry to find better ways to develop technology to produce less carbon intensive steel.”
BHP asset president WA iron ore Tim Daley agreed it’s essential that industry and government work together to ensure the path to a blossoming green iron supply chain.
“It’s fantastic to see the CME’s green iron report shine a light on some of the work we’ve been doing in the lab and with our partners for several years now,” Daley said.
“It will take a united front to help fast-track near-zero emission-intensity pathways for steelmakers using Pilbara ores, but we think the potential outcomes could be game-changing.
“If we get it right, it could be a major step forward in setting up WA, Australia, and the world for a low greenhouse gas emission future.”
CME chief executive officer Rebecca Tomkinson said the opportunity to advance down the value chain and begin refining green iron is unique.
“Steelmaking accounts for between six to nine per cent of global emissions, with ironmaking alone generating up to 90 per cent of that CO2,” Tomkinson said.
“WA’s major iron ore producers are already exploring several new pathways to drastically reduce those emissions with promising early results.”
The report’s 2030 Action Plan outlines three key priority areas for the Australian Government.
They include expanding research and development (R&D) support, tax incentives and grants to fast-track Australian green iron technology and commercialisation, boosting government investment in lowering the cost of low-emissions energy and developing common-user infrastructure.
“Ensuring the right policy and regulatory settings to unlock WA’s magnetite reserves is another key part of the decarbonisation puzzle,” Tomkinson said.
“There are massive rewards on offer if we can get this right.”
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