Australia investment in green steel industry
Source: industry government australia
7/3/20241 min read
The Australian government is prioritizing the support of green metals production under the Future Made in Australia National Interest Framework, as part of a broader strategy to become a renewable energy superpower. This initiative aims to capitalize on Australia's comparative advantages, such as existing metals expertise, abundant renewable energy resources, access to bulk raw materials, a skilled workforce, strengths in research and development, and proximity to fast-growing Indo-Pacific markets. Measures in the recent Budget include $1.7 billion over ten years for the Future Made in Australia Innovation Fund to support innovation in green metals production, and $18.1 million over six years for Green Metals Foundational Initiatives. These funds will foster private sector investment, accelerate decarbonization, and establish a green metals industry and research collaboration network. Additionally, the Australian Renewable Energy Agency (ARENA) will oversee the administration of these funds to expedite the development of innovative technologies and facilities linked to green metals production.
The government is also expanding the Guarantee of Origin scheme to certify the emissions intensity of green metals, ensuring transparency in the manufacturing process. Acknowledging the significant economic potential, a 2023 Accenture report highlighted that greening these metals could boost the Australian economy by up to $122 billion by 2040 while playing a vital role in global climate change mitigation. To support this, the government is investing in a $2 billion expansion of Hydrogen Headstart and introducing a Hydrogen Production Tax Credit to scale up the renewable energy sector and reduce early costs of hydrogen, a critical input for green metals production. This comprehensive approach aims to accelerate the net zero transition, reduce emissions from global energy systems, and position Australia as a world leader in green metals production, ultimately creating jobs and bolstering the economy.
