South Australia | Green iron and steel strategy
The steel industry worldwide is one of the biggest global carbon emitters. Decarbonising this industry will have a significant impact on international ambitions for tackling climate change.
As the world decarbonises, green iron demand is forecast to surge. South Australia has a unique combination of plentiful solar and wind resources, abundant high-quality magnetite iron ore, an emerging green hydrogen fuel supply and significant steel manufacturing
capability - all the key elements needed to make green iron.
We will use this advantage to proactively build a local green iron and steel industry and become a trusted global supply
partner.
Whyalla transformation
Our green iron and steel ambition requires a long-term, coordinated strategy. It starts with a complete transformation of the Whyalla Steelworks, commencing with the installation of a low-emission electric arc furnace. A South Australian government commitment of
$50 million and an additional $63.2 million from the Commonwealth will enable direct
CO2 emissions to be reduced by up to 90%. The transformation will increase steelmaking capacity from one million tonnes per annum (mtpa), to 1.5 mpta and protect 3,000 jobs.
A new green iron plant
Through an open call to industry, we will establish new, high-value production facilities in the Upper Spencer Gulf. Forecasts predict that a new 2.5 mpta direct reduction green iron plant would add 2,500 jobs during its construction, at least 800 more ongoing operational
jobs and $3 billion per annum to South Australia’s gross state product.
Taking rapid action
We need to move quickly so we don’t miss the window of opportunity. Global supply chains are shifting. Government and industry are making long-term investment decisions on where and how to cost-effectively produce green iron by 2030. We must create the
environment to attract private investment in new industries that will allow South Australians to prosper.
An inclusive and sustainable transition
The substantial economic, social, environmental and reputational advantages of a local
green iron and steel sector will directly and indirectly benefit our communities. There will be
employment opportunities, emissions reductions, royalties and tax revenues that improve
education, health and regional growth.
We must not leave anyone behind. Our Aboriginal peoples and regional communities in
particular must be partners in the journey and share the benefits of the state’s prosperity.
We will provide certainty to the community, industry and investors by :
providing a leading regulatory framework
supporting access to land, water and supporting infrastructure
planning for economically and environmentally suitable common user infrastructure,
corridors and precincts
ensuring appropriate environmental standards and community expectations are met.
We are determined to respond to the climate change emergency. Successfully delivering
this strategy will help us do so and create a modern infrastructure network, decarbonised
manufacturing sector and a highly skilled workforce. It will cement South Australia’s
reputation as a leader in the world’s clean energy transition and a critical contributor to
global carbon emissions reduction.