Western Australia’s Green Steel Opportunity report maps pathways for WA iron ore to be used to reduce emissions in steelmaking emissions and diversify the state’s economy.
A new report delivered by the WA State Government highlights the potential for Western Australia to join the rapidly growing global green steelmaking value chain.
Led by the Minerals Research Institute of Western Australia (MRIWA), the report report maps five ways WA iron ore can be used to reduce emissions from steelmaking.
Importantly, the green steel report considers the size and scale of the capital requirements and infrastructure needed for these pathways.
WA’s access to low-cost clean energy enables higher-grade iron feedstock products, such as green iron in the form of hot briquetted iron (HBI), to be a potential avenue for steelmakers to consider producing in the State.
As green hydrogen technology continues to emerge and more renewable energy infrastructure is established, the report identifies the State’s access to natural gas and renewable energy resources as key to supporting emissions reductions in steelmaking.
WA premier Roger Cook said, “Our State’s abundant renewable energy resources alongside our world-leading iron ore industry puts WA front and centre in the global push towards green steel.
“Moving up the green steel value chain will diversify our economy and create more local jobs right across the State.
“This report delivers on an important election commitment and will help to position Western Australia as an investment destination for low-emissions steel opportunities.”
Mines and petroleum minister Bill Johnston said, “As demonstrated in the report, a small scale 4.8 million tonne per annum (Mtpa) vertically integrated magnetite HBI plant in the Pilbara generates taxation benefits in the order of $31.7 billion to Australians during construction and operations through to 2050.
“It is estimated that the 4.8Mtpa plant would increase employment in the Western Australian iron ore sector by 1,700 full-time employees.
“The transition option of using natural gas has the potential to reduce emissions from iron making by 65 per cent and is technically feasible today. This information can be used to support investment attraction into Western Australia.
“There is increasing interest in Western Australia by the steel industry given the access to our iron ore resources and renewable energy options. Coordinated efforts will be required to secure that investment.”
In the meantime, international demand for WA’s direct shipping of iron ore material is expected to continue.
Western Australia’s Green Steel Opportunity report delivers on a 2021 election commitment and is in line with a number of State Government initiatives such as Diversify WA, the Western Australian Climate Policy, the Energy Transformation Strategy and the Sectoral Emissions Reduction Strategy.
The report is available via the MRIWA website here.