Government announces $1 billion Green Iron Fund: half to go to Whyalla

The federal government has announced a $1 billion Green Iron Fund that it says will boost green iron manufacturing and supply chains by supporting early-mover green iron projects and unlocking private investment.

Up to $500 million of the fund has been earmarked to support the Whyalla steelworks transformation, shoring up local jobs and helping with the energy transition, in the wake of the steelworks going into administration this week.

At least $500 million will be open to other applicants, and accessible for both existing facilities and greenfield projects that aim to add more value to Australia’s iron ore industry.

The competitive Fund has been designed in close consultation with industry through the government’s Green Metals Expert Panel.

Australia is the world’s largest producer of iron ore, earning more than $100 billion in export income in 2023–24, with the wider iron and steel sectors supporting over 100,000 direct and indirect jobs.

The government sees investment in green iron and steel as a way to secure future demand for Australia’s iron ore as the world moves toward lower-emissions iron and steel — and support global emissions in the process. Green metals are pivotal for global decarbonisation, with iron and steel production responsible for 8% of global emissions, with iron accounting for up to 90% of these emissions.

The Minerals Institute of Western Australia has found that a single green iron plant could add a cumulative $85 billion to GDP, add $2.4 billion in real income per annum and create 1540 full time equivalent jobs — while a 2023 Accenture report suggests a green metals industry could deliver up to $122 billion a year in export revenue to Australia’s economy by 2040.

“The Australian Government is backing in our green metals producers as the world moves towards net zero,” said Minister for Industry and Science, Ed Husic. “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.”

“We’ve got the resources, the workers, and the know-how — the only thing we don’t have is time to waste,” said Prime Minister Anthony Albanese.

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