South Australia is advancing as a leader in green iron production, powered by green hydrogen, amidst mounting global competition. As traditional steelmaking evolves to meet the demands of a decarbonizing world, locations rich in renewable energy and high-grade iron ore are emerging as front runners. Australia needs to ensure markets for its green iron exports and manage competition from Brazil, Canada, and the Middle East.
Amidst a reassessment of green hydrogen’s expansive potential, its critical role in green iron and steel production gains solidity. South Australia leads Australia in the pursuit of a green iron industry, bolstered by its swiftly transforming energy sector towards decarbonization. Recognizing the intensifying competition from other nations, Australia must seek international allies to ensure a receptive market for its emerging green iron exports, and navigate the hesitancy among steelmakers to rely on imports for iron.
Globally, numerous regions are leveraging their natural and infrastructural advantages. With access to high-grade iron ore and low-carbon energy sources, countries like Brazil, Canada, and those in the Middle East and North Africa are surging ahead in the race to establish green iron supply chains. Initiatives and collaborations across these regions are indicative of a concerted move toward DRI methods powered by green hydrogen.
The urgency for Australia to claim it’s position in the future market is underscored by the prospect of an iron ore surplus and diminishing demand from key importers like China. Australian states have responded by investing in the necessary technology and seeking partnerships that could help pave the way for a robust green iron export market.
Source: Institute for Energy Economics and Financial Analysis
Or download the full analysis by Simon Nicholas, Lead Analyst, Global Steel
