Australia's Potential to Become a World Leader in Green Iron
Australia needs around $28.8 billion by 2030 to build green hydrogen facilities, renewable energy systems, and production plants.
Government support is crucial, along with investment from other private parties, to establish the country’s green iron industry.
According to a new report by Mandela Partners, commissioned by Boundless Earth, a climate solutions firm, Australia's green iron potential could cut global emissions by 1.7% and drive economic growth.
What is Green Iron?
Green iron is produced using renewable energy sources, making it more sustainable, unlike conventional iron production, which relies on fossil fuels and emits large amounts of carbon dioxide into the air.
The study noted that by 2050, the country's green iron industry could generate $103 billion annually for the local economy. This would also lead to job creation, with around 28,000 jobs potentially strengthening the Australian workforce.
“This report clearly shows the importance and strategic opportunity of transforming our iron ore industry to a green iron industry — and its critical role in Australia becoming a renewable superpower,” Boundless Earth CEO Eytan Lenko said.
“If Australia reaches its green iron potential, it would be a huge contribution to global climate action — equivalent to exceeding national net zero in Australia.”
Why Australia?
The continent is rich in renewable energy resources, such as wind and solar power, which are critical for green iron production. It also holds the largest iron ore reserves globally (58 billion tonnes in 2023) and produces more iron ore than any other country.
If the country successfully establishes a green iron industry, it could reduce global emissions by around 1.7% by 2025 and produce 310 million tonnes of green iron annually, helping the nation achieve its net-zero emissions goals. To make this a reality, it must invest heavily in renewable energy and infrastructure, hydrogen production facilities, and green iron plants, with an estimated cost of $28.8 billion by 2030.
Australian governments have a constructive role to play alongside private parties, says the study. They must actively support the country’s transition to renewable energy through proactive measures. The lack of investment in green energy infrastructure is often cited as a significant challenge.
READ MORE: Australia Approves US$50m for Decarbonisation in Singapore
Mandala Partners managing director Amit Singh said: "$28.8 billion by 2030 is a lot to invest, no question. But we’re talking about a new industry in which Australia has unique natural advantages – an industry that would generate over $100 billion a year and 27,000 quality jobs. Surely that has to give any responsible Australian Government pause for thought.
"I think the most vital point that emerges from this modelling is that Australia has an undeniable opportunity to position itself as a global titan in a new industry, but that will not happen unless the government pushes hard now to dislodge the boulder from the top of the mountain.
"Relying on private investment alone is not going to get us there, especially given the renewable energy infrastructure requirements. It’s actually genuinely exciting to think about the potential Australia has in this moment. If we want to seize that potential inaction simply isn’t an option government has.”
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Source: Proactive
